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New York Construction Loans Let Your Build Your Dream House

New York Construction Loans Let Your Build Your Dream House

When you decide that you are going to build your own home from the ground up, there are some things that you need to think about. One of them is how you are going to pay for the construction. A traditional mortgage won't cover construction. For this you need to start looking into New York construction loans.

A construction loan is used for the construction of a new house or the renovation of an existing house. It doesn't cover the land that the house is being built on, you will have to get a separate loan for that. You will also need to make sure that the land that you are building on is in your name before you get your loan for construction.

While construction loans New York City will cover construction of a home, or renovation work, there are some things that it won't cover. It won't cover getting a co-op or condo. It also won't cover building a house on spec, or for commercial purposes. What it does cover is total new construction, rehabilitation, and major renovation. The home can be a primary home, secondary home, or investment property, like a rental.

New York construction loans are also known as one time close loans or construction to perm, or permanent, loans. The loan gets those names because it can switch from a loan used for construction to a more traditional mortgage type loan. It's called a one close loan because you only close on it once since it switches from the construction type to a mortgage type.

When you are looking at construction loans, you will want to know what the rates are, and if you will have to have any reserves. Well, the rates are the standard required rates. There is a chance that they can be waived, under certain circumstances, for more information about those circumstances, you will have to speak to your lender.

You will have to have a 5% reserve for a home that is being built from the ground up or a rehab that is non-structural rehab. For a remodel, you will have to have a 10% reserve. Like the rates, these reserves can be waived, in the right circumstances. Again, speak to your lender about those circumstances.

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.