What you need to know about construction loans. (courtesy New Home Source. New Home Source is a Parker Rose Customs Homes showcase partner representing the builder’s BOYL custom home portfolio)
There are many different types of home loans available, so it might be difficult to figure out which one works best for you. In this article, we discuss the types of loans available and help you determine which one is right for you.
Also, we outline the steps to getting pre-approved for the type of loan you want. Let‘s get started!
Lot or Land Loans
It is the best option to apply for a lot or land loan if you have found the piece of land you want to purchase but will have to wait several years until you start building. Since applying for these kinds of loans can be difficult and have unfavorable terms, paying cash is the best option. However, sometimes it is necessary to go this route.
You may see shorter-term loans, higher down payments and interest rates and additional underwriting and borrower comments.