What do I do First? Get the Land or Get the Construction Loan?

Many times you may want to build your new home and you may even have building plans of your dream house, however you have yet to purchase land and receive approvals from your local municipality to begin construction.  Typically, you would have to first purchase the land and then apply for a construction loan.  This [...]

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Modification Loans – A Type of Construction Loan

A Modification Loan is a type of construction loan that allows certain categories of homeowners to make modifications to their primary, permanent home under varied conditions. While these loan types have interest, the rates are nonetheless low and tailored to helping residents out. With Modification Loans or any type of construction loan, self-education regarding the [...]

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Two Time Close Construction Loans

If you’re looking to build or renovate a home, you are often required to take out a construction loan. There are two types of construction loans. The difference depends on whether you want to pay for the home by the time it’s completed (the one-time close loan), or whether you want to pay off the [...]

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One Time Close Construction Loans

Building a dream home can be both exciting and confusing. Traditional home buying requires a mortgage to finance an existing home. Unlike this type of home buying, one time close construction loans allows planning, building, and taking out a mortgage to be in one convenient loan.
The Basics
A one time close construction loan, also called a [...]

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Insurance for Construction Loans

As with any large project, insurance is required when building a home. Every bank will require that the homeowner have Course of Construction insurance and General Liability insurance. These insurances protect the contractors, the contractor employees, and the construction site.
Course of Construction Insurance
A short-term insurance that protects the homeowner’s building site from fire, vandalism, theft, [...]

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What is Bait and Switch?

There is nothing more frustrating than spending weeks looking for the right home construction loan, only to have the wonderful interest rate changed after turning in your application. It is certainly not what they told you over the phone after responding to their advertisement. Believe it or not, it can happen. This tactic is known [...]

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How Does Your Builder Determine How Much Your Home Will Cost to Build?

How does your builder determine how much your home will cost to build? That is the number one question homeowners ask when they decide to build a home. To determine this, is simple. Sit down with the contractor and go over everything.
The construction loan package has many forms and one in particular is the Estimated [...]

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