Top 3 Benefits of Construction Loans

1. Top 3 Benefits of Construction Loans In constructing a home for yourself, financial constraints often the cause of concern. The construction loan comes when we want easy construction of home. Construction loan has been designed especially for providing finance in a hurdle free manner and there are many merits that are in the interest of the borrower. For those who work in the housing market and who want to personalize their home, a construction loan is a great option. Construction loans can be help you build a new home or modify an existing one. Here we have discussed three major benefits of going for a construction or remodel loan. 1.Negligible Initial Payments During the actual construction process of your home, most construction loans are interest-only and that is quite helpful for the financial side of things. Even some types of loans don’t require interest to be paid until the construction is completed. After the completion of the construction the payment of the principal loan begins. This process involves two types of loans: •Loan to pay for construction •Loan to pay interest during construction.

2. 2.Set Rates The interest rates are standardized for both loans and knowing these the rates will stay same without any hidden changes. The construction loans do not include any extras like origination fees, points or junk fees. Also, additional benefits with a 580 or better credit score or anyone with VA benefits are offered. 3.Control For people who can actually afford, construction loans are like putting the housing market in the palm of your hand. It helps you to personalize every part of the process as you see fits, from the ground up. And there is nothing that is truly permanent. You can even make changes on the fly if they’re within your budget. There are several loan packages built to accommodate your situation. Construction loans offer you the perfect way to get the money you need for building materials, labor etc. Work with a business banker to find out what kind of loan your business can qualify for. Fixer-Upper and Construction Loans can help you finance a fixer-upper without breaking the bank. Our FHA 203k loan program covers the expenditure required to repair or upgrade a home, including HVAC, plumbing, and electrical systems. You may also opt to take out a construction loan that guarantees only one loan closing, which is an ideal option for builders and sellers. Source: http://www.apsense.com/article/top-3-benefits-of-construction-loans.html