If you are an aspiring homeowner looking to build your house from the ground up, you will need to obtain financing. There are tons of options out there for getting the funding you need to purchase or construct your own real estate. Finding the best option for you is easy with All American Financial Services. We offer construction loans so that you can construct the home of your dreams. There are several advantages to pursuing a construction loan. It’s an option that can really make a difference. Keep reading on to learn some of the major advantages associated with pursuing a construction loan.
Low or No Initial Payments
A great feature of obtaining a construction loan is that they are normally interest-only during the time period when your home is being constructed. That can be a big help from a financial perspective because you won’t have to spend a ton of money up front while the home is being built. Sometimes, construction loans don’t even require any interest payments until after the home has been fully constructed. After the home is constructed, your payment of the principal on the loan usually begins.
With a construction loan, you are gaining the ability to control every aspect of the construction of your home. You can personalize every aspect of your home if you’d like and have the control to make changes as things go along. A construction loan provides you with a lot of control during the construction of your home, which is ideal for people who are seeking flexibility. The loan typically will cover the cost of the work and the materials needed to construct your home from the ground up.
Two Loan Options
Construction loans are typically offered in two different types, which means you have more flexibility. A construction-to-permanent loan is designed to provide you with the capital needed to cover the construction of the home. After the construction is finished, the loan becomes a permanent mortgage. A construction-only loan, you will take out two loans. The first loan will be short term and only used to cover the construction of the home. After you move in, you will then take out a mortgage loan to pay off the construction costs. You will pay two sets of fees with this option, but you won’t need to put down as big of a down-payment.
Construction loans can provide you with the capital needed to construct the home of your dreams from the ground up. They offer flexibility and control for future homeowners that aren’t sold on traditional mortgages. If you are interested in hearing more about construction loans or would like to apply, reach out to All American Financial Services today. We can provide you with more information on the construction loan process and let you know what you need to do to apply for a construction loan with us.