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Getting a Construction Loan for Investment Property
Because there are so many financing options available to today’s homebuyers and real estate investors, it can be hard to make the right choice. When it comes to upgrading your property, or even building a new one, one option worth considering is construction loans for investment properties.
Renovation or construction loans for investment properties can be used for several projects, but almost always allow the user to customize their space or property. Anyone interested in new construction or a big renovation should investigate this as a viable financing option. Keep reading to learn if these loans are right for you and learn how you can qualify.
What Are Construction Loans?
Construction loans are short-term financing options for new real estate or renovation projects. They are used to pay for the costs of building a new house or for upgrading an existing property. Construction loans are only applicable for the time it takes to complete the project, and users only borrow what they need. These loans are distributed directly to the contractor (instead of the borrower) in segments called “draws.” Draws are marked as certain elements of the project are completed, such as the foundation being poured, or the frame being built.
The main appeal of construction ... more

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