Financing for Under Construction Properties
What is Financing for Under-Construction Properties?
Under-construction property financing is a form of loan taken for a property that is under construction but not yet complete. Most homebuyers, investors, and developers do this to raise funds for the project still in the construction process. Such financing can involve many of the stages of construction, all the way from the initial purchase of land or property to funding construction costs. This would provide purchasers and investors with a payment-spreading option so that one can manage the investment until the property is finished and ready for occupancy or renting purposes.
Terms and Conditions
When considering financing for under-construction properties, it’s important to understand the key terms and conditions that apply. Here’s a quick overview of what to expect:
Loan Amount:
The estimated value of your property after the renovation, your credit score, and financial stability.
Repayment Period:
Typically upto 25 years, but may convert or roll over into a long-term mortgage.
Down Payment:
Typically around 50% of the project cost.
Interest Rates:
Usually higher than regular mortgages; can be fixed or variable
Draw Schedule:
Done in stages contingent upon construction progress inspection.
Documentation:
It contains project plans, builder contracts, proof of income, credit history, and construction budgets.
Why Choose Us for Financing?
Expert Guidance
Our team is well experienced in financing under-construction properties to ensure the best possible advice and options for your particular project.
Customized Solutions
Be it building a new home or an investment property from scratch or expanding existing structures, we are here to help you with personalized financing solutions.
Smooth Process
We concern ourselves with the minutest of details in the process from application to disbursement and make sure that the process is hassle-free.
Competitive Rates
The best interest rates with competitive terms are offered for all of your construction financing needs through our vast network of lenders.
How We Work?
Initial Consultation
The initial consultation enables us to get an overview of your project, financial situation, and financing needs so we can pre-qualify the most applicable loan options for your consideration.
Application
We will assist you in completing the loan application, organizing any supporting documents required for underwriting, and preparing for lender reviews and approvals.
Approval and Funding
Once approved, we work with lenders to facilitate the release of funds by the construction draw schedule and completion dates.
Ongoing Support
We are constantly in support and communication during the process of construction. We will help ensure funds are released as need be and problem-solve any issues that might arise.