Are you considering building a custom home in Baltimore County? Understanding how construction loans work is the first step toward turning your dream into reality. Construction loans provide the financial foundation for creating your new home, offering flexible options to cover building costs.
Construction loans are short-term, interest-only loans designed specifically for funding the construction of a new home. Unlike traditional mortgages, these loans are disbursed in stages, known as "draws," to cover costs as construction progresses. Once the home is complete, many borrowers transition into a permanent mortgage.
This loan combines the construction and mortgage phases into a single process. Once the home is built, the loan automatically converts into a standard mortgage.
Advantages:
This loan funds only the construction phase. Borrowers need to secure a separate mortgage once the home is complete.
Advantages:
Lenders assess several factors to determine eligibility:
At Absolute Builders LLC, we specialize in making the home-building process seamless and stress-free. From design to construction, our team works closely with clients to ensure every detail aligns with your vision.
Ready to build your dream home in Baltimore County? Contact Absolute Builders LLC to learn more about our new construction services and how we can guide you through securing a construction loan.
Call us at 410-807-2430 or schedule a consultation today.
Building a home is a significant investment, but with the right team and financing, it’s within reach. Let Absolute Builders LLC bring your dream to life.
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