Advice on Financing the Building of Your New Home
Building your new home can seem like an intimidating process if you’ve never done it before, especially when it comes to making sure the correct finances are in place to complete your project successfully. Here is some advice from a residential architect in NJ . You Need a Construction Loan, Not a Mortgage A bank or lender won’t grant regular mortgage when you are building, because that is financing for something that already exists. Different rules for financing apply when you are planning to build, and lenders can be far stricter with their criteria for loans and offer different loan structures as a result. Loans for building projects are known as construction loans, self-build loans or construction mortgages. These are typically short-term loans that come with a one-year maximum term, unlike regular mortgages which typically have much longer terms. This doesn’t mean you have to pay it off in just one year. Instead, the loan allows you to pay for what you need...