If you cannot find the right home to buy, you might be thinking about how much it will cost to build a new house or renovate the one you currently call home. The process of borrowing the money to pay for this project is different from getting a mortgage to move into an existing property.
A construction loan is a short-term loan that covers only the costs of custom home building. This is different from a mortgage, and it is considered specialty financing. Once the home is built, the prospective occupant must apply for a mortgage to pay for the completed home. Construction loans typically are one year in duration. During this time, the property must be built, and a certificate of occupancy should be issued.
Some things to consider:
- Check your credit score first
- Ask for a reputable builder
- Depending on the loan type, consider what down payment you may need.
At Ideal Lending we offer multiple types of Construction Loans, including Conventional, FHA, Renovation, VA, and USDA.
Our Construction Loan Programs
Conventional Construction Loan Details
- Stick-Built & Modular Construction
- Owner-Occupied & Second Homes
- Minimum Credit Score of 680
- 5% Minimum Down Payment on Owner-Occupied
- 10% Minimum Down Payment on Second Homes
- Fixed Loan Terms Available
- Available for purchase loans (does not own the lot) and refinance loans (owns the lot)
- Additional terms & conditions apply. Contact your loan professional for more details.
FHA Construction Loan Details
- Stick-Built, Modular & Double-Wide Construction
- Owner-Occupied Only
- Minimum Credit Score of 640
- 3.5% Minimum Down Payment
- Fixed Loan Terms Available
- Available for purchase loans (does not own the lot) and refinance loans (owns the lot)
- Additional terms & conditions apply. Contact your loan professional for more details.
VA Construction Loan Details
- Stick-Built, Modular & Double-Wide Construction
- Owner-Occupied Only
- Minimum Credit Score of 640
- Zero Down Payment for Qualified Borrowers
- Fixed Loan Terms Available
- Available for purchase loans (does not own the lot) and refinance loans (owns the lot)
- Additional terms & conditions apply. Contact your loan professional for more details.
USDA Construction Loan Details
- Stick-Built, Modular & Double-Wide Construction
- Owner-Occupied Only
- Minimum Credit Score of 640
- Zero Down Payment for Qualified Borrowers
- Fixed Loan Terms Available
- Available for purchase loans (does not own the lot) and refinance loans (owns the lot)
- Additional terms & conditions apply. Contact your loan professional for more details.
If you decide to go with a construction loan, make sure to contact us to learn more and decide what is best for you.
