Use an interest reserve account:
At loan closing, an account is established to pay the estimated interest costs during the construction of the home. Since the borrower is only charged interest on the amount of funds disbursed, an estimate of the average disbursed amount is made. Your construction loan specialists will estimate that, on average, 60% of the loan amount will be disbursed during the term of the construction period. This interest reserve account is paid up front and is held to pay the interest during the time of construction. The idea of this account is to help individuals so they do not have two housing payments during the course of construction.Let us build your dream home.
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Flagstaff, AZ 86001
Call Community First Financial for all your construction financing needs;