Build your perfect home with Mann Mortgage’s customized Construction Loans!
Construction loans make building Your Dream Home surprisingly easy and affordable.
What are construction home loans?
Our Missoula Office, with a steadfast commitment to serving our community, is uniquely poised to assist you through the intricacies of construction loans. Whether you are a neophyte in the realm of homebuilding or a seasoned practitioner in the art of renovation, our profound expertise and unwavering dedication are at your disposal, guiding you through each step of this intricate financial process. As we delve into the complexities of construction loans, let us navigate through the following sections to demystify the nuances of this specialized financial instrument.
Not sure where to get started? That's okay too, we're happy to meet you where you're at and direct you to the right place or person.
The MannMade construction loan process.
Construction loans are specifically tailored to cover the costs of building or renovating a home. They are short-term loans designed to fund the construction phase.
Construction loans typically have two phases – the construction phase and the permanent mortgage phase, which converts the loan into a traditional mortgage once construction is complete.
- Interest rates for construction loans can be variable and are usually higher than those for traditional mortgages. Payments may be interest-only during the construction phase.
Lenders generally require a significant down payment, often 20% or more of the project’s total cost, to minimize their risk.
The approval process for construction loans is rigorous, involving thorough financial assessments and detailed project plans to ensure the feasibility of the construction project.
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When the construction phase reaches its triumphant conclusion, the dynamics of your construction loan metamorphose. It typically undergoes a transition into a permanent mortgage, ushering in a new financial phase for your home. This transition is accompanied by a shift in payment structure. During the construction phase, you may have been making interest-only payments, but once construction is finished, you will commence conventional mortgage payments, including both principal and interest.
Construction loans are short-term, have higher interest rates, and cover the construction phase, while traditional mortgages are long-term and finance the completed home.
To qualify, you’ll need a strong credit history, a detailed construction plan, a substantial down payment, and the ability to repay the loan.
If your project exceeds the budget, you may need additional financing. Our Missoula Office can work with you to explore options like construction-to-permanent loans.
Indeed, construction loans extend their utility beyond new home construction; they can be judiciously employed for substantial renovations and remodeling projects as well. This flexibility can be particularly advantageous for those looking to enhance their existing homes. When opting for a construction loan to facilitate renovations, it is imperative to have a well-structured plan that outlines the scope, cost estimates, and timeline of the project.
“I was always in the loop on my loan process. I loved the one-time close construction loan. It saved me thousands to be able to lock in the interest rate.”
Josue Gabriel Lopez
Let's get you home.
Borrow up to 97% of a home’s value with as little as 5% down. Our local loan experts will help guide you.
