Welcome to Construction Loans Guide
Construction Loans Article
. For a permanent link to this article, or to bookmark it for further reading, click here.
New Construction Loans: What to Look For
from:There are certain important milestones in almost every American's life. You get married, you have children, and you own your own home, although not always in that order. Owning your own home is definitely the most expensive of these options, and also the most broad. Sure, you could be like everyone else and buy an already built home in your neighborhood, but that isn't always the best option. If you can afford it, it is often best to build your own home. This way, you get the exact house that you always wanted.
If you plan to build your own home, you don't have to pay all of those costs upfront. Instead, you can pay for it by looking into new construction loans. These loans are great for first time home builders. They provide you with the money that you need in order to pay for materials as well as the fees to your contractor, architect, electrician, and whoever else will help you with construction your brand new home.
New construction loans are much more complicated than your average mortgage loan. In fact, they couldn't be any more different. As you may already know, mortgage loans take care of the cost of owning a home. Each month, you pay a portion of the money you owe, as well as any interest that has accrued.
With new construction loans, this works differently. During the construction of your house, all you have to pay for is the interest on your loan. This saves you a lot of money during that time. It is especially helpful since most people also have to pay for rent on another home or apartment while they are building a new one.
After the construction is over and your home is completed, you will have to pay for the full balance of any new construction loans that you took out. Unfortunately, this is too much money for the average person to spend. Luckily, there are other options. Ask any prospective lenders if they offer construction-to-permanent loans. With this, your construction loan will turn into a mortgage loan at the end of building. This means that you won't have to pay all of the money when your house is done, and it will just go into regular mortgage payments, saving you hassle as well as money.
New construction loans are perfect for when you are planning on building your own home. Not only will you get the money that you need in order to have an amazing, personalized house, but you will also only have to pay interest during its construction.
Construction Loans News
First Merchants Bank Acquires Loans and Assumes Deposits of SCB Bank Through a Modified Whole Bank FDIC Transaction
First Merchants Corporation has reported an agreement between First Merchants Bank and the FDIC to purchase approximately $117 million of loans and assume $136 million of deposits in Shelby County Indiana.
Read more...Loans Grow 19.3% In 2011
MANILA, Philippines - The total outstanding loans of commercial banks went up by 19.3 percent at the end of 2011, higher than 2010 growth of 8.9 percent and reflecting a robust growth in the real sector.
Read more...St. Cloud City Council OKs construction assistance loans
St. Cloud City Council unanimously approved a new program Monday meant to spur immediate business construction projects.
Read more...Chinese Developers Rise on Central Bank Pledge for Loans: Shanghai Mover
Chinese developers, including KWG Property Holding Ltd. and Shimao Property Holdings Ltd., rose for a second day after the nation’s central bank this week pledged to meet demand from first-home buyers seeking loans.
Read more...Parliamentary panel was told NFC cannot use loans for property
KUALA LUMPUR, Feb 10 — The Finance Ministry had told a parliamentary committee last November that there was no provision that permits the National Feedlot Corporation (NFCorp) to use its federal loan to purchase property.
Read more...Hoku Corporation Announces Term Extension of $50 Million Loans
HONOLULU, HI-- - Hoku Corporation , a solar energy products and services company, today announced the extension of the maturity date of $50 million in loans from Tianwei New Energy Holdings Co., Ltd., ...
Read more...Congress should boost credit union commercial lending
Congress should boost credit union commercial lending Congress should boost credit union commercial lending McLean is afraid his office construction business will be turned down for a loan and that 100 subcontractors for which he provides jobs will have to look elsewhere for work. Credit unions, known mostly for car loans, are limited by federal law on the volume of commercial loans to just 12 ...
Read more...Government loans need definite re-payment agreements - PAC
Accra, Feb. 8, GNA - The Chairman of Public Accounts Committee (PAC) of Parliament, Mr Albert Kan-Dapaah, on Wednesday called for definite repayment agreement for companies that were granted Government loans.
Read more...