Colorado New Construction Financing
New construction financing can be broken into two basic categories: Builder provided construction financing (the same as buying a resale home from a mortgage financing standpoint), and buyer provided construction financing. This section is dedicated exclusively to information about buyer provided construction financing. For more information about mortgages for new construction with builder provided financing follow the 'thinking about buying or building your next home' link to the left.
Buyer provided construction financing means that the ultimate occupant of the home (the buyer) is financially responsible for the construction loan (needed to finance the cost of construction) as well as the permanent loan (needed to pay off the construction loan, with continued payments until the home is owned free and clear).
There are two options for buyer provided new construction financing:
One close construction to permanent financing means that the construction and permanent loan are wrapped into one loan. For more detailed information about this option visit the one close overview.
Two close construction and permanent financing means that separate construction and permanent loans are obtained. For more information about this option visit the two close overview.
For More Information: Overview of the construction process. How much do I qualify for?
Last updated: Monday, 11-Aug-2008 21:24:03 CDT
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