The Low down on
Construction Loans
A construction loan is a short-term loan that covers only the costs of home building. This is different from a traditional mortgage, and it’s considered specialty financing. Once the home is built, the occupant must apply for a mortgage to pay for the completed home.
There are many loan options available when it comes to home building, from ground-up building to a complete remodel of the entire house. Here are some loan options:
Construction-Only Loan
This type of loan is short-term and is usually issued for a year. It’s meant to cover only the actual construction period.
Construction-To-Permanent Loan
construction-to-permanent loans are a financing option that prospective custom home builders can apply for. Like construction-only, construction-to-permanent financing are one-time loans that fund construction and then convert into a permanent mortgage. During the construction phase, borrowers make interest-only payments
Renovation Loan
Renovation loans, also known as FHA 203(k) loans, can be used for home renovation and are insured by the Federal Housing Administration (FHA). This allows borrowers to both purchase and renovate their new home while still making one monthly payment to cover both costs. Conventional loan borrowers may qualify for these loans through Fannie Mae (HomeStyle Renovation) and Freddie Mac
End Loan
An end loan is a traditional mortgage loan that a home buyer or home builder (if you’re building your own home) can apply for after the new home is constructed. You can get an end loan if construction is complete on the home. One good aspect of an end loan is that the mortgage application for a newly constructed home is the same as it is for any other home.
- Complete our Commercial Loans Mortgage Qualifier
- Receive options based on your unique criteria and scenario
- Compare mortgage interest rates and terms
- Choose the offer that best fits your needs
You ask, we answer
We know the mortgage process can be tricky. Here’s some questions people like you have asked us in the past.
At Channel Mortgage, we are dedicated to providing you with a comprehensive online platform for tailored mortgage solutions. Our commitment to integrity ensures that you receive prompt customized quotes and competitive rates. With our user-friendly tools and expert guidance, we strive to simplify the home loan process and assist you every step of the way. Experience a smoother journey towards homeownership with Channel Mortgage.
Channel Mortgage proudly holds the esteemed position of being a diamond partner with the nation’s largest wholesale purchase lender. This partnership translates into remarkable advantages for you, including the quickest turnaround time and access to an exceptional platform that ensures a consistent and successful loan closure. With an average closing time of just 12 days, we prioritize efficiency without compromising quality.
Safeguarding your personal information is of utmost importance to us. We prioritize the highest level of security measures by employing bank-level encryption and conducting continuous monitoring of our website to ensure its safety. Rest assured, we are committed to never selling your data or utilizing it for any purpose other than assisting you succeed.
Mortgage rates are subject to daily fluctuations and are influenced by individual circumstances. However, by initiating your application online, you will consistently receive our most competitive rates. Take advantage of this opportunity to access today’s rates and learn how rates are trending: get your free quote today!
Channel Mortgage is best for people who have a credit score of 620 or above and are ready to buy, sell, refinance, or build their dream home.
Do You Qualify?
To qualify for a mortgage, lenders typically require that you have a debt-to-income ratio of “43/49.” This means that no more than 43% of your total monthly income (from all sources, before taxes) can go toward your new mortgage payment, and no more than 4 late payments.