Our construction loan programs are prefect for your purchase and major remodel projects. Below is some information to help get you started. To get started immediately click here for our on-line application.
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| Borrowers may need a construction loan if they are building a custom home or if they intend to purchase a new, unbuilt home in a new development. Also included are mobile and manufactured homes being attached to land. Lot loans enable borrowers to acquire land prior to beginning construction. These loans may have restrictions such as a requirement to begin construction within a pre-determined period, such a one year. Other lot loan programs do not have such timefame restrictions, but they may require a larger down payment. Construction loans are necessary because of the extended period and special requirements of the building process which can last from six months to one year. These loans can be used by borrowers wanting to hire professional contractors, or in some cases when the borrowers wish to build the home themselves.
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Many mortgage lenders offer borrowers the One Time Close construction loan. This type of construction loan will finance the six to twelve month construction process of a primary or secondary residence. During the construction period, interest is charged only on the funds that are actually dispersed for construction. When construction is completed, a One Time Close loan wil automatically convert the balance of the construction loan into a permanent, long term loan. The main benefits of a One Time Close construction loan is that it requires borrowers to sign only one set of documents at the beginnig of the project and it allows borrowers to lock in their interest rate for the permanent loan at this time. This gives peace of mind especially in a flucuating rate market when rates a year down the road may be much higher than today.
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There are a few documents and qualifications that borrowers will need to have when they begin the application process for a construction loan. Some of the qualifications mortgage lenders will require are a minimum credit score and sufficient liquid assets. The documents construction lenders will ask for include a building department permit, information about the builder and many require that construction be completed within 12 months.
| | A Seattle construction loan can help you build the home of your dreams in Seattle. Our Seattle construction loan experts can help you choose the Seattle construction loan that is right for you. Contact Infinity Capital Mortgage Inc to discuss your Seattle construction loan.
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