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.

Ask the expert
Keith Gumbinger
Keith Gumbinger
Mortgage Expert
Vice President, HSH.com
About Keith: Mortgage market observer and analyst with 35 years experience... (more)
Submitting your question...

Question received! Check back later to see if your
question gets published.

Q: Can I get forbearance for my mortgage?
MAR 18, 2020
A:

The answer is "possibly." It depends on the situation.

Read More
Q: Is mortgage insurance tax deductible?
JAN 08, 2020
A:

Tax deductibility for PMI premiums or MI premiums for FHA loans has been an on-again, off-again kind of thing. For 2019 and 2020, it's back on.

Read More
Q: How many times can I use my VA home loan?
OCT 31, 2019
A:

There are three ways you can restore your VA eligibility so that you can take advantage of it more than once.

Read More
Add to Homescreen?
X
X
Install this web app on your phone :tap and then Add to homescreen