Construction Loan: A construction loan is a short-term loan that provides funds to cover the costs of building a custom home. Construction loans typically have higher interest rates than traditional mortgages and require regular payments during the construction process.
Traditional Mortgage: Once the construction is complete, you can apply for a traditional mortgage to pay off the construction loan. Traditional mortgages typically have lower interest rates than construction loans and longer repayment terms.
Cash: If you have significant savings or other assets, you may be able to pay for the custom home build with cash.
Qualifying for Financing
To qualify for financing, you’ll need to meet certain requirements, including, good credit, income and a down payment. Most lenders require a down payment for a construction loan, which can range from 10% to 20% of the total project cost.
Once you’ve identified your financing options and determined your eligibility, it’s time to work with a lender to secure funding for your custom home build. It’s important to shop around and compare rates and terms from multiple lenders to ensure that you get the best deal possible. Working with an experienced lender can also help you navigate the financing process and ensure that you understand all the terms and conditions of the loan.
If you’re ready to start the financing process for your custom home build, reach out to Curington Homes, a trusted quality custom home builder. We can help you navigate the process and provide you with the guidance you need to make your dream home a reality. How long should you expect to wait for a custom home built by Curington Construction? Learn more here. Don’t hesitate to take the first step towards building the home of your dreams.
