Posted on: 09th Feb, 2011 11:16 am
What kind of loan is better for building a new home? Construction loan or Conventional (END) loan?
Are you buying from a builder? Or are you financing the construction costs yourself?
If i were buying through a builder?
then the builder will finance the construction costs and offer the home for sale to you..... you would then take out a regular purchase loan.... no different than buying from a seller of an existing home.
construction loan = you finance the building process(for a custom builder) and then arrange permanent financing at the end. this can be done with a one time close or a two time close.
one time.... all is done up front
two time.... you refi the construction loan into perm.
common misconception
construction loan = you finance the building process(for a custom builder) and then arrange permanent financing at the end. this can be done with a one time close or a two time close.
one time.... all is done up front
two time.... you refi the construction loan into perm.
common misconception