New Home Construction Loans
When you’re ready to build your dream home and need help finding the best home financing option, Maine Mortgage Solutions LLC should be your first call. Like any home loan process, there are several moving parts that can be difficult to understand, which is why Mark Violette is here to streamline everything. There’s nothing we can’t handle for you when it comes to home construction loans.
Call Maine Mortgage Solutions LLC today at (207) 730-1495.
Construction Loan Overview
- Your construction loan can be used to pay for the land, construction labor, the home, and more.
- Can also be used for renovations, additions, and remodeling projects.
- You have an option to close at the beginning or end of the process depending on the loan.
- Construction loans typically have higher interest rates than traditional mortgages.
- The typical down payment for a construction loan is 20% but can vary depending on the lender.
One-Time Close Construction Loan
A front construction loan, or known as a construction-only loan, is where the construction costs are paid upfront in full. The borrower is responsible for the closing costs and the construction debt becomes your mortgage, which is a second loan you will also pay closing costs for.
End Loan Construction Loan
An end construction loan is a long-term loan used to pay off the short-term construction loan. As the borrower, you are essentially buying the property once it’s built. With this option, your costs are paid at the end instead of the beginning like a front construction loan.
