A construction loan is typically a short-term loan used to pay for the cost of building a home. It may be offered for a set term (usually around a year) to allow you the time to build your home. At the end of the construction process, when the house is done, you will need to get a new loan to pay off the construction loan – this is sometimes called the “end loan.” Essentially, this means you must refinanceat the end of the term and enter into a brand new loan of your choosing (such as a fixed-rate 30-year mortgage) that is a more conventional financing option for your newly completed house. Construction loans are story loans. That means that the lender has to know the story behind the planned construction before they’re willing to loan you money. Because it’s a story loan, it’s not going to be standardized like mortgage loans underwritten to Freddie Mac or Fannie Mae guidelines. That said, there are some common features to a construction loan. Construction loans typically require interest-only payments during construction and become due upon completion. Completion for homeowners means that the house has its certificate of occupancy.
Whatever stage of development, from preliminary planning to completed and stabilized, Hillbrook Financial & their lenders can provide project-appropriate financing on a fixed or floating interest rate basis for:
- Single and multi-tenant industrial and office buildings
- Retail properties
- For-sale single and multi-family residential
- Selected special-purpose commercial properties
We also have a team of insurance agents that can get you the best deal. Ask us about what we can do for you today!