If you want to build your own home, one of the steps is applying for the financing you need for construction. You might be wondering what you should know to be successful with the application process. Below, we offer a few pointers.
Pointers When Applying for a Construction Loan
- Get the land squared away. In order to build, you need land. If you already own the lot where you will build, great—that step is all taken care of. If not, you will need to buy land. You do not necessarily need to have the land paid off in full in order to qualify for a construction loan. But you do need to at least be paying on it. Depending on the situation, that might mean taking out a loan for the land as well.
- Have construction plans ready to go. To apply for construction financing, you will need to be able to present the full scope of your project. That means showing up with plans and a timeline. What about the land loan? Technically, you can apply for a land loan without full, detailed plans and a specific, concrete schedule, But you will have a much easier time getting approved if you do have all the details in place and on paper.
- Save for a down payment. A down payment of around 20% is typical for a construction loan. So, work on saving up for your down payment before you apply. Plus, the more money you can put down on the loan, the easier it will be to get approved for competitive rates and terms.
- Qualify With Less Than Perfect credit. Many prospective home builders assume that it is not easy to qualify for a construction loan without perfect credit. But this is not the case. In fact, Style Mortgage offers portfolio construction loans, which are ideally suited to borrowers who may not have ideal credit.
Style Mortgage Can Help You Finance Construction in Massachusetts
If you have questions about construction loans, the friendly loan experts at Style Mortgage are here to give you the detailed answers you need. We can help you apply step-by-step for a construction loan. If you need a land loan, we can help you with that application as well. To get started now, please give us a call today at (617) 870-6239 to schedule your consultation. We can help you finance construction of a home or commercial property in Boston or anywhere in Massachusetts.
This information is intended for informational purposes only and is not an offer to lend. All applications are subject to approval