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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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