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31 metro areas saw lower home values in the first quarter of 2025 compared to a year ago. What's happening in your area? See HSH.com's Home Value Tracker.

31 metro areas saw lower home values in the first quarter of 2025 compared to a year ago. What's happening in your area? See HSH.com's Home Value Tracker.

Construction and permanent financing

Q: At what interest rate could I get a loan for $100 thousand, 30 yr fixed if I own the land and am a contractor?

A: It's not clear what you are trying to accomplish. If you are building a home, you'll probably begin with a construction loan. These short-term loans often run a year or less, are usually based on the Prime Rate and you typically pay only interest during the construction phase. Once the home is completed, you then would generally get the market interest rate for the "permanent" financing. The construction and permanent mortgages can come from different mortgage lenders, but there can be benefits for using the same one, such as a single closing.

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Keith Gumbinger
Keith Gumbinger
Mortgage Expert
Vice President, HSH.com
About Keith: Mortgage market observer and analyst with 35 years experience... (more)
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APR 08, 2025
A:

Credit life insurance is sold to homeowners as a means to pay off the mortgage in the event of the death of the homeowner.

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Fannie Mae states they do back loans for borrowers who have no Social Security number.

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Some homeowners will pay this 3.8 percent tax when they sell their homes, but only if they meet certain conditions.

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