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Find Out What Ohio Construction Loans Can Do For You

Find Out What Ohio Construction Loans Can Do For You

When you are looking for somewhere new to live in Ohio, you may decide that the best home for you is one that you build yourself. So, you buy your land, and get ready to build. Once that is done, you need to have money to start building. Ohio construction loans are one way to get the money to pay for your new home.

A construction loan is known by other names. It\'s also called a one time close loan or a construction to permanent loan. These names come from the same place. Once the construction on your new home is finished, the loan changes from one that finances that phase, to one that is a more traditional mortgage, thus a permanent loan. It\'s called a one close since you only have to close the loan at the beginning of the process.

The new construction loans Ohio do have some limitations as to what they will cover. For example, they will not cover the cost of the land to build your house on. They will cover the cost of a home being built from the ground up. They will also cover a rehab or major renovation of a home. They cannot be used for a multi-use structure, apartments, condos or homes being built on spec. However, they can be used for homes that are being used for investment purposes, like a rental home.

People who are interested in new home construction loans Ohio also need to have information about some things before they decide on their loan provider. One is what the rates are. For these loans, the rates are the required standard. There are some circumstances in which they may be waived. Another thing you need information about is reserves.

You need to know if you need to have reserves, so that you can set your budget. You will need to have a 5-10% reserve, depending on what kind of project you are doing. Again, there are some circumstances in which the reserve can be waived.

If you have decided to build a house, but are unsure of how to finance it, you need to get more information about construction loans. They are there to help you finance the home of your dreams.