New Construction Loans
New construction loans are specialized financing options designed to support the building of new homes or properties from the ground up. These loans provide the necessary funds to cover all aspects of the construction process, from purchasing the land to completing the final touches.
What are New Construction Loans?
Bridge loans are short-term financing options designed to bridge the gap between the purchase of a new property and the sale of an existing one. These loans provide immediate cash flow, allowing you to secure a new property before your current property is sold.
Types of New Construction Loans?
- Construction-to-Permanent Loans: These loans start as a short-term construction loan and convert into a permanent mortgage once the construction is finished. This option simplifies the financing process by combining two loans into one.
- Standalone Construction Loans: These are short-term loans that cover only the construction phase. After the project is complete, a separate mortgage is needed to pay off the construction loan.
Benefits of New Construction Loans
- Flexible Financing Options: Choose between construction-to-permanent and standalone construction loans based on your specific needs.
- Competitive Rates: Benefit from competitive interest rates that make your construction project more affordable.
- Personalized Service: Our team of experts will guide you through every step of the process, ensuring a smooth and stress-free experience.
- Customizable Loan Terms: Tailor your loan terms to fit your project's timeline and budget.
How New Constructions Loans Work
How It Works:
- Pre-Approval: Start by getting pre-approved to understand your budget and financing options.
- Submit Plans and Budget: Provide detailed construction plans and a realistic budget for your project.
- Loan Approval: Once your plans and budget are approved, we will finalize your loan terms.
- Draw Schedule: Funds are disbursed in stages, known as draws, as construction milestones are completed.
- Completion and Conversion: Upon completion, the loan can be converted into a permanent mortgage if you opted for a construction-to-permanent loan.
Eligibility Requirements:
- Credit Score: A good credit score is typically required to qualify for a new construction loan.
- Down Payment: A down payment of 20% to 25% is usually required.
- Builder Approval: The builder must be approved by the lender.
- Detailed Plans: Detailed construction plans and a budget must be submitted for approval.
Why Choose NewKey Lending?
At NewKey Lending, we understand that building a new home or property is a significant investment. Our goal is to provide you with the best financing options and personalized service to make your construction project a success. With our expertise and commitment to customer satisfaction, you can trust us to support you every step of the way.
Get Started Today!
New construction loans from NewKey Lending offer a comprehensive and flexible solution for financing your building projects. Whether you're constructing your dream home or an investment property, our loans cover every stage from land purchase to final construction. Secure the funds you need to bring your vision to life. Contact us today to start your journey towards building success!