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Choices For Louisiana Construction Loans

Choices For Louisiana Construction Loans

There are some unique features in Louisiana construction loans. These loans are different from home loans or mortgages as the money will be used to pay for labor and materials to build a home. This presents a problem for the lender as they are taking quite a risk to finance a project of uncertain value until the house is done. This represents a challenge for the borrower as they must convince the bank that the result will be worth the risk.

A construction loan has some unique features that make them clearly different from other loans. When lenders offer this kind of product, they often set up a schedule of 'draws,' which are scheduled payments to the contractor. The point of this system is to make sure reasonable progress is being made and the project is on budget.

Usually interest payments are due monthly during the construction until the home is ready to move in. There are a couple of options for the new home construction loans louisiana contractors are familiar with. Sometimes the lender will convert the loan to a traditional mortgage to pay off the construction. Other times the loan will be due on completion of the project.

The construction to permanent financing option for a new home construction loan louisiana homeowners prefer, is a valuable product. This means there is only one application to submit and there is only one closing. There may be limitations on how much the lender will loan though. They will want to make sure the borrower will earn enough to be able to make the regular monthly payments when they move in. It is always wise to check around to see if there is a better rate on a different mortgage that can be used to pay off the construction loan.

The interest rate for construction loans might be higher, but it could be worth it if the trade-off is better terms on the mortgage. This is a valuable resource for a community as it allows those who have some land, and imagination, a chance to build their dream home. There are not many opportunities like this so they should be embraced when they are available.

Nationwide Construction Loans

Nationwide Construction loans specializes in providing construction loans to families building their dream home from ground up on their own land. The types of construction loans we provide are typically called one time close construction loans or construction to permanent loans. We also provide construction only loans if desired.

We also specialize in providing construction to permanent financing for major remodeling projects. Major remodeling projects typically are residential owned homes that are in need of major remodeling and expansion in square footage size. Major remodeling also includes homes that are in need a significant remodeling makeover's from ground up as well as complete tear down projects.

Last but not least we specialize in providing land loans for families looking to build a new home sometime in the near future. To apply for a construction loan you need to own land, have house plans, hire a builder, provide a cost breakdown including building permits. Once you own land then and typically only then are you able to obtain all the above items needed in order to apply for a construction loan.