Construction loans are specialized short-term loans designed to provide financing for the construction of your primary residence, that is turn into a 30-year mortgage upon completion of the project. It can be used on already owned land or be used to finance the land and the construction.
- Contract Duration: Typically 30 days to buy the land, 12 months of building time followed by 3 24 days for loan remodification.
- Credit Score Requirements: No Minimum credit Score by VA, overlays from banks might apply.
- Down Payment: A minimum down payment of 5% is required primary residence and 15% is required for investment properties.
- Important! Get your plans approved by the county as fast as possible.
- Compensation: Both lender and Borrower paid compensation