Construction Loans... how do they work? Construction Loans are loans for building a home. Your Lender needs to know all the details of Construction including cost to built, loan to value, and detailed plans for the home itself. Construction Loans are different in that they are not underwritten by a Freddie Mac or Fannie Mae.
Typically Construction Loans require interest only payments during the construction process and are due and payable at completion of the home. They are usually variable interest rate loans, and a draw or dispersement schedule is draw up between the Lender, Contractor, and the Customer.
Construction to Permanent is a financing program that allows the the customer to have the Construction loan automatically after the certificate of occupancy has been issued. If you need a Construction loan visit our Spokane Mortgage Company site. or Call Scott at 509-340-3909
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