UNLOCK THE SECRETS OF CONSTRUCTION LOANS FOR YOUR DREAM CUSTOM HOME
Talking about finances isn’t always an interesting topic. However, when it comes to building your dream custom home, it’s very important. Your funding decisions will shape every aspect of your custom home project. It ranges from where you build to the materials and features you include. So, how do you secure the financing you need? And, how do you know which type of funding is best for your needs? Don’t worry! We’ve got you! In this post, we’ll answer some of the most frequently asked questions about construction loans, land loans, and home builder financing. We’ll help you make informed decisions for your dream home journey.
Understanding Construction LoansLet’s start with the basics. What exactly is a construction loan? A construction loan covers the costs of building a custom home. It includes land, design fees, building materials, labor, and permits. These are short-term loans with higher interest rates than other loans. Meanwhile, lenders view construction loans as riskier investments. This is because there is no existing collateral (e.g., the home itself) to secure the loan. As a result, lenders often require a significant down payment, usually around 20 to 30 percent of the total project cost. The loan duration usually aligns with the construction timeline. It’s typically about a year. Throughout the construction process, your lender will conduct inspections to ensure the project is progressing as planned. So, you’ll get the funds in installments according to these inspections. Additionally, the borrowers are responsible for interest payments when they receive the funds. Types of Construction LoansNow that you understand the basics, let’s explore two common types of construction loans. First, the construction-only loan. Second, the construction to permanent loan. Construction-Only Loan: This type of loan requires you to pay back the total loan amount or secure permanent financing (such as a mortgage) once construction is complete. Construction-to-Permanent Loan: With this option, the loan transitions into a mortgage once construction is finished, eliminating the need for additional financing and potentially saving on fees. Financing Options For Your Custom HomeIn addition to construction loans, there are other financing options to consider: Land Loan: Did you find the perfect lot but still not ready to build? Perhaps, a land loan can provide temporary financing until you’re ready to start construction. Home Builder Financing: Some builders offer financing options directly to their customers. Often, they’re in partnership with financial institutions. While convenient, it’s essential to compare offers to ensure you’re getting the best deal. Ready to Build Your Dream Custom Home?So. securing the right financing is just the first step on your custom home-building journey. Also, for a guide to the entire process, get in touch with Dawol Homes. We’ll help you from budgeting to choosing a land and beyond. Embark on your dream custom home journey with confidence and let us help you turn your vision into reality! Call Dawol Homes now.Find great home tips on our Facebook page Dawol Homes Dawol Homes Sales Office We build homes in: Cypress River Plantation, Waterway Palms, Waterbridge, Murrells Inlet, Collins Creek, Bellwood Landing, Carolina Forest, Plantation Lakes, North Myrtle Beach, Socastee, Surfside Beach, Pawleys Island, Litchfield Plantation via Blogger https://ift.tt/grPjVOD March 12, 2024 at 10:40PM
0 Comments
Leave a Reply. |
AuthorDawol Homes is a premier Custom Home Builder located in Myrtle Beach, SC. Founded in 1996, each year Dawol Homes has grown given its commitment to exceeding Customer Satisfaction. David Wolons, owner and President, moved to the Myrtle Beach area in 1996 from West Boylston, Massachusetts. With many years of experience as a General Contractor, David started Dawol Homes with a desire to build homes with quality and unique features for each and every homeowner. Over the years, the company has expanded to provide more than just custom homes. Among the Dawol Homes offerings are: house/lot packages, plan design, home remodeling, and Commercial construction. Contact
Dawol Homes 9404 Hwy 17 Bypass Murrells Inlet, SC 29576 (843) 294-2859 Email: [email protected] Website: http://www.dawolhomes.com FIND ME ONLINE
InstaPaper Scoopit Wordpress Tumblr Diigo Blogger Folkd deviantART linkagogo Livejournal Skyrock Joomla Google Sites Youtube DailyMotion veoh photobucket 4shared a.nnotate box.com freepdfhosting issuu scribd jimdo weebly evernote flickr vimeo MySpace Pearltrees Plurk Imgur ttlink MORE RESOURCES About.me Alternion BrandYourself FollowUs Gravatar Behance ContactUp Ello.co Carrd.co ziplink Archives
February 2022
Categories |