A construction loan is a short-term loan that is a fixed rate interest only and is usually from 6 to 18 months in length. We offer these loans on owner occupied properties as well as investment properties to build and sell.
In many instances, our construction lenders will allow the borrower to be the General Contractor/Builder. A construction loan may provide a way to remodel an existing home or to purchase an existing home that will require some additional repairs before putting a permanent loan on the property. These loans are available to borrowers from city lots to large acreages and from factory pre-built manufactured homes to million dollar mansions.
Rates: The interest rate on a construction loan may vary depending, again, on location, creditworthiness, and the total loan package, and is tied to the prime rate on Wall Street. The rate for construction lending has been has been as low as 3.875% to 6.5% in the past. These rates will also vary depending on whether we do a one time close or a construction then permanent loan.
A pre-qualification can be handled by telephone. This will be followed up by an email with a link to our loan application, a land & construction loan flyer and a credit report authorization. Once we receive your application, we will pull your credit, run your numbers and as soon as we receive a contract, or intent to proceed, we will send you a list of things we will need to submit your loan to the lender. The pre-approval process can usually be done the same day we receive your application and a pre-approval letter can be issued at that time.
Please call us today or use our online pre-qualification form to get pre-qualified for your home.