Home Construction Loans
Be prepared for building on your land with a Home Construction Loan from Galaxy Lending Group.
While some people may search for the dream home in a sea of pre-built houses, other prefer to build their dream home from the ground up. Once the plans have been drawn and the land bought, you will need to determine your financing needs for the construction. Galaxy Lending Group offers Home Construction Lending to help you with your new construction project and financing.
Home Construction Loans Facts:
What is a Home Construction Loan?
A construction loan is typically a short-term loan that is used to pay for the cost of building a home. It is usually offered for a set term to allow you the time to build your home. At the end of the construction process, when the house is built, you then get a new loan to pay off the construction loan (this is also call the “end loan”). Basically, this means that you will refinance at the end of your Home Construction Lending term and enter into a brand new loan of your choosing, that you feel is a more conventional financing option for your newly completed home.Learn More
Benefits of Home Construction Loans
Start Building Sooner
A home construction loan gives you the ability to begin new construction sooner versus paying for the home build over time. This also means a quicker finished home.
Many home construction loans have no or low payment options during the construction process, making it affordable for most budgets.
For those looking to renovate an existing home, construction loans can come with fixed interest rates and payments to fit the homeowner’s budget.
You get to spend the money on what you want when building your home, customizing it for your needs. This gives you flexibility to add or cut back on various aspects of the building process.
Qualifying for a Home Construction Loan
The first step to qualifying for a home construction loan is to understand what makes you eligible:
A Qualified Builder Must Be Involved. A qualified builder is a licensed general contractor with an established reputation for building quality homes.
The Lender Needs Detailed Specifications. This includes floor plans, as well as details about the materials that are going to be used in the home.
The Home Value Must Be Estimated By an Appraiser.
You Will Need to Place a Down Payment.
New Home Construction
If you are building a new home, a construction loan gives you the ability to create a customized home that will be a perfect fit for your needs. You can choose your contractors to make the most of your budget, giving you the opportunity to stretch every penny of your home construction loan. Once the build is complete, you have the option to find a more suitable mortgage on your home to pay off your home construction loan for a long-term, affordable payment plan.
Repairs & Renovations
Home construction loans can be used for repairing problems with your existing home, like adding a new roof or septic system. They can also be used to renovate and improve your home, adding more value. In many cases, repairing or renovating a home will increase the value of the home, allowing for a refinance of the original home mortgage to pay off the home construction loan. Or, the construction loan can be paid off over time, depending on what works best for the homeowner.