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Finance > Insurance > Home InsuranceFacts That You Need To Know About Construction Loans!
Posted by magnaloans in Finance on July 18th http://www.wholesalehydroflaskcheap.com/ , 2017


Construction loans are becoming more popular than before and many people are choosing to build their new home or for investment property you can also build with help of Construction Loans, here are the details that you need to know about Construction Loans:


What is a Construction Loan?

Construction Loan is a short term, interim loan for financing the cost of constructing your new dream home. Lenderscredit providers will secure a mortgage over the real estate property you are financing and they will make periodic payments to your builder at periodic intervals as the work progresses.


How is a Construction Loan Funded?

Construction Loan Providers have different Loan policies and requirements that they adopt when processing a loan application. However, most are similar. Here is a list of how lenders fund construction loans:


1) Loan Providers will fund the loan amount required by you to cover the cost of purchasing a vacant land and for the building construction costs
2) Before construction starts and if you have already borrowed to purchase vacant land on which you are building your new dream home Cheap Hydro Flask Clearance , the first loan disbursement made by the lendercredit provider will go towards paying off the vacant land
3) Loan Providers will break down the loan amount into “progress payment draw down” amounts, which are made to the builder at the completion of each construction stage


How is a Construction Loan Structured?

Construction loan, whilst it is similar to a traditional mortgage, has some key differences. Here is a list of the key features of a construction loan:


1) It is typically a short-term solution with a maximum of one year
2) The borrowers will be expect e[/url] Cheap New Balance 574 Retro Cheap New Balance 574 Pink