Two-Close Construction and Permanent Financing
You have the option of securing stand-alone construction financing, followed by a permanent mortgage once construction is complete.
You can expect to pay slightly more for the total cost of getting financing with this solution due to the fact that you are paying for two sets of closing costs. For many buyers, this disadvantage is offset by the potential for a new home without having put any money down.
No money down new construction financing is achieved due to the fact that your permanent mortgage is actually a refinance of your construction loan. Because of the refinance, current appraised value (once built) is evaluated when setting the final loan to value, rather than the cost of construction. Additionally, in some situations, service (paying) on the construction loan can be built into the construction loan, eliminating all out of pocket expenses for you during the construction process.
The permanent mortgage options available to be used in combination with two-close construction financing are extensive, limited only by the limits imposed by the construction lender. LTVs available for the permanent loan include as little as zero down, though there may be limitations imposed by this solution. Please talk with your mortgage consultant for details to all the options that are available to you.
Last updated: [an error occurred while processing this directive]
Copyright ©2002-2004 iHomeLoanInfo.com, All Rights
Reserved.
Copyright and Terms
of Use
