www.centralmdmortgage.com - Construction Loans

CONSTRUCTION/PERMANENT LOANS

These loans are available with a number of different loan types such as fixed rate or ARMs. Typically, if you do not own the lot but plan to acquire it at the same time you take your construction financing, you apply for a loan that would provide a large cash advance toward the lot purchase at settlement. The remainder of the funds are held b the bank, and issued periodically as the house is being built. During the construction period, you will be billed monthly for only the interest that is due on your outstanding balance. The closer you get to completion, and the more money you have withdrawn from the construction funds, the higher your monthly payment will be. When the house is completed, your loan is converted into a fixed permanent payment, and an escrow account for property taxes and homeowners insurance is established. Some investors allow you to lock in your permanent mortgage rate at application, while others require that you "float" until 60 days before the home is completed to lock in the permanent rate. Click here to apply online.