How A Construction Loan Works - Financing Your New Home - Construction Perm Loans Explained. Looking for how to finance new home construction? Looking to Build A New Home? Construction financing for your new home can be confusing yet The New Home Specialist Steve Turner, explains Construction Perm Loans and the Process of How they work. In this explainer video, we will discuss construction loans, how to finance new home construction and the process of how a construction loan works. Consider this your source for construction perm loans explained.
There are 2 main ways to finance your new home: End Loans or Construction Loans. Here we look at how construction loans (or sometimes referred to construction perm or construction to permanent loans) work, how they differ from end loans and the process of how these loans work when financing your new home.
A construction loan settlement occurs at the start of the new home process, where an end loan occurs once all construction is complete. Getting a mortgage on a used or resale home is really what we call an end loan. Sometimes end loans can work on new construction too, but not always. If the landowner is different from the builder, or if you already own the lot or just looking to build a custom home, your builder will probably require a construction loan.
Once approved for the construction perm loan, the lender will help you work on setting up the settlement. Once the loan is settled or started, this construction loan will provide the first round of funds needed to get construction started. So upon settlement, the mortgage company would provide the funds needed to cover the lot cost and foundation. Once the foundation is complete, they would release more funds to have the home framed. This continues on for about 4, 5 or 6 times during the phases of construction.
With over 20 years helping other design and build brand new homes, Steve Turner is not just a REALTOR, he is the New Home Sales Pro. He’ll make sure you’re well taken care of, every step of the way in your home building journey. When you’re looking to build your new home, Contact Steve directly so he can work for you. As a Pennsylvania Real Estate professional and real estate agent, Steve also has the experience with the York, Lancaster & Harrisburg Homebuilders to be your resource for any new homes for sale in the area.
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*Our legal team is making me say this: The information in this video is deemed accurate during as of the date of this filming. All rates, programs, and terms are subject to change without notice. Steve Turner is a licensed real estate professional yet is not providing any legal, financial or medical advice. (Ok, that one seemed a bit overboard to me too!) Not all applicants may be approved, contact your lender directly to see what if any, programs you may be qualified for. (I know, damn attorneys take all the fun out of things!)