Loan

Credit News

Construction Loans, One – Two Time Closing, CountryPlace Mortgage, construction loans.#Construction #loans


construction loans

Construction loans

Construction loans

  • Construction loans
  • Construction loans
  • Construction loans
  • Construction loans
  • Construction loans
  • Construction loans
  • Construction loans
  • Construction loans

Construction loans

Construction loans

Construction loans

Construction loans

Construction loans

Construction loans

Construction loans

Construction loans

Construction loans

Construction loans

Construction loans

Construction loans

Construction loans

Construction loans

Construction loans

Construction loans

Construction loans

Construction loans

Construction loans

Construction loans

Construction loans

Construction loans

Construction loans

Fill out an online application today. It’s easy.

Construction loans

Construction loans

Construction loans

Construction loans

Construction loans

Construction loans

Get your documents in order and we’ll handle the rest.

Construction loans

Construction loans

Construction loans

Construction loans

Construction loans

Construction loans

Value your mobile, modular

or manufactured home.

Construction loans

Construction loans

Construction loans

Construction loans

Construction loans

Construction loans

Construction loans

Construction loans


Home Construction Loans, Citizens Bank, construction loan.#Construction #loan


Home Construction Loans

While some people search for their dream houses among a pool of houses already built, others prefer to customize their dream homes by building on a specific plot of land. Once you’ve purchased that land and begun designing your dream home, you’ll need to determine financing for the construction, find the right builder and understand zoning restrictions. One option may be to consider a home construction loan or similar product designed to help you with home construction finance, rather than a new home purchase where you would apply for a mortgage.

Before you can get home construction financing in place, you first need to learn building restrictions and local zoning regulations. In most areas, those local ordinances strictly control where, what and how you can build. Generally speaking, they are in place to ensure you to blend in with the look of surrounding structures. Go to your local courthouse or town office and look at a zoning map to determine the zoning classification of where you want to build. Classifications include rural, residential, agricultural, business, commercial and industrial. After you know you’re zoning classification, ask for a copy of zoning regulations.

Once you’ve established that you have the legal right to build your project under applicable zoning rules, you’ll need to give some thought to the narrower zoning provisions that govern allowable design and how they’ll affect your plans. Potential zoning restrictions or guidelines may include:

  • Height and overall size of buildings
  • Building proximity to other structures
  • Area of the lot that will contain structures
  • Distance from the road or a water source
  • Landscaping
  • Fences
  • Pools

Home construction finance options

As these plans begin taking tangible form, you’ll need to get serious about how you’ll secure financing for your project. Some lenders offer a home construction loan that acts as a line of credit to cover expenses during the building and then becomes a permanent mortgage when you receive a certificate of occupancy.

Most home construction loans are made for a limited duration, often no more than a year. Lenders may approve disbursal of the money in phases, which is designed to ensure that distinct portions of the project are completed before any additional funds are released for later phases. You may be able to go this route if you have equity built up in your land already.

As an alternative to a residential construction loan, some lenders will approve you for a permanent mortgage and provide your builder with assurance that you will be starting mortgage payments when you are handed the keys to move into the home. Builders generally have lenders they work with to finance the cost of materials and labor during the build and will be paid by your lender when the work is complete. You will then start making payments on a permanent mortgage. Since you already own the land, this may be considered a ‘down payment’ on your mortgage when you apply, which may help you obtain a larger loan.

Finding a builder

Once you know your zoning options and have lined up home construction financing, you’re ready to search for the right general contractor or builder to help you execute your plans. He may or may not bring an architect to the table as well. Ask around for referrals to builders or contractors with a strong track record of building quality homes on time and within budget.

  • Be clear ahead of time on what your builder will provide you. This is usually something a lender will require as well for greater assurance in your home construction finance.
  • When will the home be completed?
  • Will the builder help with such crucial details as serving as a liaison to utilities?
  • If not, who is responsible for seeing that your house connects to the municipal sewer systems, the electric grid and other utilities?

Choose a permanent mortgage or a home construction loan with help from Citizens Bank

Let a Citizens Bank home loan originator help you decide if a permanent mortgage solution or a residential construction loan is right for you when building your new house. Call us at 1-888-514-2300 to learn more about home construction finance for your situation. If you’re ready to start building, you can start the mortgage application process online today.


Home Construction Loans, Citizens Bank, home construction loans.#Home #construction #loans


Home Construction Loans

While some people search for their dream houses among a pool of houses already built, others prefer to customize their dream homes by building on a specific plot of land. Once you’ve purchased that land and begun designing your dream home, you’ll need to determine financing for the construction, find the right builder and understand zoning restrictions. One option may be to consider a home construction loan or similar product designed to help you with home construction finance, rather than a new home purchase where you would apply for a mortgage.

Before you can get home construction financing in place, you first need to learn building restrictions and local zoning regulations. In most areas, those local ordinances strictly control where, what and how you can build. Generally speaking, they are in place to ensure you to blend in with the look of surrounding structures. Go to your local courthouse or town office and look at a zoning map to determine the zoning classification of where you want to build. Classifications include rural, residential, agricultural, business, commercial and industrial. After you know you’re zoning classification, ask for a copy of zoning regulations.

Once you’ve established that you have the legal right to build your project under applicable zoning rules, you’ll need to give some thought to the narrower zoning provisions that govern allowable design and how they’ll affect your plans. Potential zoning restrictions or guidelines may include:

  • Height and overall size of buildings
  • Building proximity to other structures
  • Area of the lot that will contain structures
  • Distance from the road or a water source
  • Landscaping
  • Fences
  • Pools

Home construction finance options

As these plans begin taking tangible form, you’ll need to get serious about how you’ll secure financing for your project. Some lenders offer a home construction loan that acts as a line of credit to cover expenses during the building and then becomes a permanent mortgage when you receive a certificate of occupancy.

Most home construction loans are made for a limited duration, often no more than a year. Lenders may approve disbursal of the money in phases, which is designed to ensure that distinct portions of the project are completed before any additional funds are released for later phases. You may be able to go this route if you have equity built up in your land already.

As an alternative to a residential construction loan, some lenders will approve you for a permanent mortgage and provide your builder with assurance that you will be starting mortgage payments when you are handed the keys to move into the home. Builders generally have lenders they work with to finance the cost of materials and labor during the build and will be paid by your lender when the work is complete. You will then start making payments on a permanent mortgage. Since you already own the land, this may be considered a ‘down payment’ on your mortgage when you apply, which may help you obtain a larger loan.

Finding a builder

Once you know your zoning options and have lined up home construction financing, you’re ready to search for the right general contractor or builder to help you execute your plans. He may or may not bring an architect to the table as well. Ask around for referrals to builders or contractors with a strong track record of building quality homes on time and within budget.

  • Be clear ahead of time on what your builder will provide you. This is usually something a lender will require as well for greater assurance in your home construction finance.
  • When will the home be completed?
  • Will the builder help with such crucial details as serving as a liaison to utilities?
  • If not, who is responsible for seeing that your house connects to the municipal sewer systems, the electric grid and other utilities?

Choose a permanent mortgage or a home construction loan with help from Citizens Bank

Let a Citizens Bank home loan originator help you decide if a permanent mortgage solution or a residential construction loan is right for you when building your new house. Call us at 1-888-514-2300 to learn more about home construction finance for your situation. If you’re ready to start building, you can start the mortgage application process online today.


How Do Home Construction Loans Work, home construction loans.#Home #construction #loans


How do home construction loans work?

Can you explain how construction loans work? Why is it so difficult to find construction-loan information online?

Construction loans for new-built homes are either obtained by the homebuilder or prospective owner. In pre-recession days, small builders had greater access to capital but now must frequently put the onus on the buyer to get the loan. That’s one reason most new homes rising today are simply “specs” built by big, high-credit corporate conglomerates.

The basics of construction loans

Let’s proceed on the assumption that you’re taking out an individual construction loan. Such loans, which can be tough to get without a previous banking history because of the lack of collateral (a finished home), have special guidelines and include monitoring to ensure timely completion so your repayment can begin promptly.

Construction loans are typically short term with a maximum of one year and have variable rates that move up and down with the prime rate. The rates on this type of loan are higher than rates on permanent mortgage loans. To gain approval, the lender will need to see a construction timetable, detailed plans and a realistic budget, sometimes called the “story” behind the loan.

Once approved, the borrower will be put on a bank-draft, or draw, schedule that follows the project’s construction stages and will typically be expected to make only interest payments during construction. As funds are requested, the lender will usually send someone to check on the job’s progress.

Construction-to-permanent arrangement

Upon completion, which is defined by a certificate-of-occupancy issuance and full payment of contractors (and often their signatures on lien releases), the borrower’s loan liability will typically roll over into a mortgage, ideally in an arrangement where the borrower pays closing costs only once. Of late, lenders have been combining the two into a single 30-year loan with one closing, called construction-to-permanent financing. Because of the bank’s greater loan-to-value risks in these, I might add, be prepared to put a little more skin in the game: The lender may offer only 80 percent of project costs or even less. If you already own the land, that can serve as equity.

Construction delays due to weather and material/labor availability are fairly common. Be sure to build some allowances for this into the construction timetable.

They’re a small part of the market

Why is there so little information or competing lender offers on construction loans online? For starters, these loans represent only a very small percentage of home loans. Plus, they’re a bigger risk. Hence, such financing isn’t the type of thing lenders aggressively market online; you have to hit the streets for it. Regional banks and credit unions are typically the best sources.

Without impeccable credit or a strong existing lender relationship, you may be challenged to find an affordable construction loan in today’s lending climate, though a booming local housing market and substantial family income tend to grease approvals.

Ask the adviser

Bankrate’s content, including the guidance of its advice-and-expert columns and this website, is intended only to assist you with financial decisions. The content is broad in scope and does not consider your personal financial situation. Bankrate recommends that you seek the advice of advisers who are fully aware of your individual circumstances before making any final decisions or implementing any financial strategy. Please remember that your use of this website is governed by Bankrate’s Terms of Use.


SBA Loan Rates 2017 – 504 and 7a Loan Rates, Green Commercial Capital, construction loan rates.#Construction #loan #rates


construction loan rates

Green Commercial Capital / MyMortgageBanker.com

SBA Loan Rates 2017 1-800-414-5285

Construction loan rates

Construction loan rates Construction loan ratesConstruction loan rates

Construction loan rates

100% Financing for Established Businesses plus Doctors, Dentists, Veterinarians, Funeral Homes, Pharmacies

SBA 504 Refinance Program 2016

Self Storage Mini Storage Businesses Eligible for SBA Financing

SBA Loan Rates Near All Time Low

No Down Payment Commercial Property Financing

I am extremely pleased with the loan you helped me obtain. Your service, rates, terms and professionalism impressed me.

SBA 504 Loan Rate – 4.56% Effective Rate*

Construction loan rates

The 504 loan rate (effective rate) for 20 year commercial real estate loans is 4.56%* The effective rate is inclusive of all servicing fees. (Some lenders do not advertise the all inclusive rate, so you may see the rate advertised slightly lower in some areas of the country).

The 504 program consists of 2 loans:

  1. first mortgage for approx 50% of the project cost

Low 25 Year Fixed Rates for Multi-Purpose Properties

The 25 year fixed rate option for multi-purpose properties (office, warehouse, light industrial, wholesalers, manufacturing, retail, medical office, dental office, R D, etc). is offered at a very low rate. To be eligible for this particular program the property needs to be of the type that could be used by many different types of businesses.

Most 504 first mortgage rates and terms will vary depending on the type and size of the loan. Rates for this program have been trending up since the presidential election in November of 2016 and are in the 5% to 5.75% range currently. (Other options are available for single purpose properties – see below).

SBA 7a Loan Rates

The 25 year fixed rate is very competitive and never adjusts. These loans are available if the majority of the loan proceeds are used for commercial real estate. The underwriting can be a little tougher than for a variable rate, but this is a phenomenal opportunity to lock in great low rates for the long term if you qualify.

Variable rates are typically Prime + a margin not to exceed 2.75%, The margin is set by the lender based on their cost of funds and the quality of the loan. Most lenders will offer something between Prime + 1.25% and Prime + 2.75%. 7a loans can also be based on the one month LIBOR rate.

Please contact us at 1-800-414-5285 for more information about the possibility of a fixed rate

10 Year Loans for Business Acquisitions

The SBA 7a (aka SBA Advantage Loan) is also a great solution for business acquisitions as well as refinancing of business debt or partner buyouts and the rates can be fixed or variable for up to 10 years.

504 Loan Rates

First Mortgage Rates: Currently range from low 4% range to as much as 6.5% depending on loan size, term, property type and strength of transaction and are typically amortized for 20 to 25 years and in some cases as long as 30 years.

The 5 year fixed rate with a 25 year amortization is a popular product. After the initial 5 years the loan could adjust as frequently as monthly or as infrequently as every 5 years depending on the lender.

October 2017 504 Mortgage Rate: 4.56%* – fixed for 20 years.

The combination of the 2 loans and the fact that the second mortgage is always permanently fixed make for very attractive 504 loan terms.

SBA 504 Equipment Loans are typically 10 years and can be anywhere from .25 to 1.5% lower than commercial real estate transactions.

SBA 504 Refinance Rates may be slightly higher and multi-purpose property rates are typically lower than single or special use properties like hotels or self storage properties.

Construction loan rates

More About The Fixed Rate Option for 504 First Mortgage

The low rate SBA 25 year fixed rate first mortgage option is available for strong borrowers (strong cash flow, very good credit and credit scores, etc.) financing multi-use properties under the 504 (Grow Loan) program. The loan is fixed for the entire term of the 25 year first mortgage.

The rates for this program are very competitive and when combined with the low rate second mortgage it makes for very attractive fully fixed long term rates. (The rate for the first mortgage will vary depending on loan size, prepayment penalty, etc).

Again, this program is a true fixed rate that will never adjust, so while the rate may be higher than the 1. 3 or 5 year fixed and other options, this loan is the better choice if you intend to own your property for the long haul.

Please contact us for more information about this program: 1-800-414-5285

504 Loan Payment Example

Here is an example of loan amounts and payments for a $1.5 million transaction with 10% down and a 1st mortgage rate of 5%:

Down Payment/Equity Injection: $150,000

The payments would be as follows:

Construction loan rates

Please contact us at 1-800-414-5285 to find out how the SBA 504 or 7a could help your business.

Please note: the SBA does not make loans directly and interest rates are set by the lenders who make the loans.

* Rate includes fees to SBA, CDC and central servicing agent. (Rates change monthly).


Construction Loans for Custom Residential Properties, construction loan rates.#Construction #loan #rates


Construction Loans

  • Construction loan rates

Finance your project, using one of our One Time Close Construction or Remodeling Loans. We offer Powerful Programs combined with Expert Advice, Killer Rates and Prompt Service.

Construction loan rates

T hese programs combine the construction and permanent financing of your project.

You qualify for the loan once, lock in the permanent rate, sign one set of loan documents and have up to 12 months to complete your residential construction project.

  • During the construction period, interest is charged only on the funds that have been disbursed. The permanent loan period begins when the project is completed.
  • Finance up to $3,000,000 and up to 90% of the future value of your new dream home depending on whether you can fully document your income or not.

Construction loan rates

New Home Construction

Construction and take out financing of ground up residential, owner occupied properties, up to four units.

Construction loan rates

Remodeling Loans

Major remodeling loans for currently owned or purchase and rehabilitation of residential properties, up to four units.

Construction loan rates

FHA 203(k)

FHA’s rehabilitation loan program for currently owned homes and purchase transactions of up to four units.

Construction loan rates

Modular Homes

Modular, manufactured & fifth wheel homes. What are the differences? Is financing be available for them?

Construction loan rates

Bad Credit Loans

Construction loans are available for damaged credit, but things can work very differently in this case.

Construction loan rates

Builder Construction Loans

Also known as spec loans these are for speculators who plan on building several homes or a condo project.

Construction loan rates

Lot Loans

Lot Loans for when you are not ready to build, but the opportunity presents itself. For up to Four Units.

Construction loan rates

Stated Income Loans

For hard to document income or very complex combination of corporate and/or trust and personal returns.

Construction loan rates

Closing Costs

Typical closing costs for a construction loan are a little different from conventional mortgages.


Construction Loan, Construction Mortgage, Construction Loans, And Other Construction Financing Options In Ontario, construction loan rates.#Construction #loan #rates


Ontario Construction Loans Mortgages

From the Desk of:

Construction Mortgage Broker

In my experience, whether you re a builder, buyer, or property owner, individuals seeking construction financing tend to be in one of the three stages.

Stage One They re planning a project and are starting to do their research on construction financing sources, how construction financing works, etc.

If you re at this stage, sign up on the right side of this page for the special report on construction financing pitfalls and you ll also receive our information series on the topic of construction finance.

Stage Two They ve completed initial research and planning and now have more specific questions that need to be answered.

For individuals at this stage, I offer a free 15 minute phone consultation where you can ask me absolutely anything about construction financing and I ll do my best to provide the answers. Click Here to schedule a time we can talk either by giving me a call or sending me an email.

Stage Three They re ready to secure financing right now for a residential or commercial financing project and require immediate assistance from a construction financing expert.

If this best describes your situation, Click Here and give me a call right away so we can quickly assess your options and get you a quote.

Construction loans for residential, commercial, and industrial projects are important elements to any construction project that requires financing.

Each application for construction financing is slightly different, but there are also a lot of similarities to consider.

Regardless of the type of construction project we re taking about, management of cash requirements and timing must be well understood and calculated before any financing is applied for or acquired. A construction project will impact the cash flow of builders, suppliers, service providers, borrowers, and potentially the actual lenders, so the importance of accurate budgets, completion stages, payment timelines, and disbursement requirements can’t be understated.

Like any form of financing, a construction loan has to be secured by something of value. If the underlying property has sufficient equity to cover off the first draw of the project, a loan can be established as a second mortgage registered to the property. As construction advances, the property will grow in value and at predetermined points of completion more funds can be advanced against the increased value of the overall property.

These points of completion, or milestones, are established at the beginning of the project and reflect points in the project when the completed work would actually increase the fair value of the property. As an example with a residential home, the first milestone is typically the completion of the basement and foundation. The next milestone would likely include the framing of the building and enclosure of the walls and roof.

When a milestone is met, the lender will get a third party opinion of value from an accredited appraiser (most cases) to verify that sufficient work has been completed to a satisfactory degree to support an increase in property value. Once verified, the construction draw is issued by the lender directly to the builder and the project advances to the next stage. The process is repeated until the overall project is complete.

Construction loans are either stand alone bridge loans for only the period of construction, or they are part of a combination loan that starts out as construction financing and rolls into a pre-approved long term mortgage.

In the first case, the construction financing is provided by a lender that only issues capital for construction projects. The “take out” of the construction funds at the completion of the project will be done by a separate lender that may only be focused on completed projects.

For situations where separate lenders are involved, the construction financing entity will want to know that longer term financing is available or has already been arranged so that at the completion of the construction project, the construction lender can get paid out. If this is not well know or established before construction commences, the construction lender may suspend their financing approval until they are comfortable that a suitable exit plan exists.

In the second case, the same lending group provides the construction financing facility at the outset, and rolls the funds advanced into a longer term mortgage facility at completion. This type of arrangement tends to only be available in high net worth situations where the construction funds advanced do not represent a high percentage of the value of the available security.

In other words, the higher the percentage of the project that is financed by a construction loan, the more likely the construction financing element will be provided by specialized construction lenders not involved with the long term financing of the project. These specialized lenders are bridge financing experts that turn their capital many times a year by focusing exclusively on short term construction financing projects.

As the size and complexity of a construction project goes up, so does the requirements of the related lenders. Lenders will further specialize by types of financing projects and even by geography, so locating and securing construction loans for your exact requirements can be bit challenging at times.

Even when construction financing is located and secured, the terms and conditions of use can vary considerably from one lender to another and should be clearly understood before accepting a lender’s commitment.

As I mentioned earlier, the project management aspects of a construction loan can be significant and should not be taken lightly.

While I’ve personally worked on many successful construction projects, I’ve also seen many cases where there were significant delays in the project, budgets were not accurate and did not properly allow for any contingencies, the administration process and requirements of the lender were not well understood and created cash flow shortfalls that either put the project in jeopardy or stalled the project in an unfinished stated.

I’ve also successfully helped people that have come to me in the middle of a project where the sources of funding could not meet the needs of the construction schedule. Through some creative bridge financing, I ve been able to save their projects.

The point I’m trying to make here is that there is enough complexity and uncertainty in any construction project to warrant the assistance of a professional to not only help you secure the best available financing, but also guide you through issues as they may arise.

That’s why the best first step when seeking a construction loan is to give me a call so you can get a free assessment of your options and learn more about how to successfully manage the overall process.

Providing Construction loans and Construction Financing Mortgages in the following Southern Ontario Locations:

Acton, Ajax, Alliston, Arnprior, Ancaster, Angus, Aurora, Barrie, Belleville, Bolton,Bowmanville, Bradford, Brampton, Brantford, Burlington, Caledon, Cambridge, Carleton Place, Chatham, Clarington, Clifford, Collingwood, Cookstown, Elmvale, East York, Etobicoke, Fenelon Falls, Fonthill, Georgetown, Grimsby, Guelph, Hamilton, Keswick, Kingston, Kitchener, Lancaster, Lindsay, London, Lucan, Markham, Mississauga, Newmarket, Niagara Falls, Niagara on the Lake, North York, Oakville, Orangeville, Orillia, Ottawa, Owen Sound, Peterborough, Picton, Port Hope, Port Perry, Richmond Hill, Sarnia, Sault Ste. Marie, Scarborough, Sharon, St. Catharines, St. Jacobs, St. Thomas, Stoney Creek, Stratford, Streetsville, Thornhill, Thorold, Tillsonburg, Toronto, Uxbridge, Vaughan, Wasaga Beach, Waterdown, Waterloo, Welland, Westport, Whitby,

Whitechurch, Stouffville, Wiarton, Windsor, Woodstock, Woodbridge, York

Construction loan rates


Plot and Construction Loan, Plot and Construction Loans, construction loan calculator.#Construction #loan #calculator


Plot Construction Composite Loan

You have identified a beautiful plot of land on which you wish to construct your dream home by yourself. Come to DHFL for a composite loan that covers the cost of the plot of land as well as the construction.

Features and Benefits of DHFL Plot Construction Composite Loan

  1. Tenure Term: The tenure of your Plot + Construction Composite Land loan ranges from 1 to 20 years. The term, however does not extend beyond the retirement age or 60 years whichever is earlier (65 years for self-employed individuals)
  2. Purpose: Avail a Plot + Construction Composite Land loan for purchase of non-agricultural land situated within Municipal / Local Development Authority limits and then construct your house.
  3. Reduce your EMI : With tenure of 20 years, you can reduce the EMI amount on your Plot + Construction Composite Land loan, so that your outgoings every month do not come in the way of your lifestyle and living standards.
  4. Interest Rates: The Interest rate applicable is based on the DHFL’s Retail Prime Lending Rate (RPLR) which fluctuates from time to time based on the money market conditions.
  5. Processing Fees (Non-Refundable) : This is charged as the fee towards processing your loan application:

Salaried individuals (SAL)

Self-Employed Professionals / Non Professionals (SEP / SENP)

*GST as applicable

  • Easy Repayments: You have 2 options for repayment of the loan based on the EMIs payable on your Plot + Construction Composite Land loan:
    1. Through ECS (Electronic Clearing Service) based on standing instructions to your bank
    2. Post Dated Cheques(PDCs) drawn on your Savings/Salary account
  • Plot Construction Composite Land Loan: Get Maximum Tax benefit under Home Improvement Loan scheme. As per Indian IT Rules, the current applicable exemption u/s 24 is ` 2 lacs for the interest amount paid in a financial year and up to ` 1.5 lac for the Principal amount repaid in the same year. Thus up to ` 3.5 lacs is tax exempt, helping you save up to ` 1,08,150 tax annually (Assuming he is taxable at the maximum tax rate i.e. 30.9%).
  • Applicant and Co-Applicant:Plot + Construction Composite Land loans can be applied by individuals. The loan amount can be further enhanced by including an earning co-applicant.
  • Stamp Duty: Stamp duty on the loan documents to be executed shall be paid by the Applicant.
  • Pre-Payments:There are no pre-payment charges if paid 4 times in a financial year after 6 months. For pre-payments above 20% in a financial year, a fee of 2% is charged on the excess amount being so paid. A pre-payment charge of 2% charge on the outstanding amount is applicable if no construction done within 3 years and 3% after 3 years if the borrower is other than individual.
  • Easy Documentation: To enable us to speedily process your Plot + Construction Composite Land loan application, we will require the following:
    1. KYC (Know Your Customer) documents
    2. Proof of Income documents and bank statements as per log-in checklist
    3. Property related documents
  • Documentation Required For Plot Construction Composite Land Loan

    Plot Construction Composite Land loan: Services Charges

    Download Forms

    Click here to view download forms

    Construction loan calculatorENQUIRY FORM

    All fields are mandatory

    Construction loan calculatorBLOG

    Construction loan calculatorCALCULATORS


    USDA Construction to Permanent Loan, construction loan calculator.#Construction #loan #calculator


    USDA Construction to Permanent Loan

    Construction loan calculator

    USDA Construction to Permanent Loan

    Are you looking for a home financing option that supports you from start to finish? USDA home loans can help you.

    The USDA Rural Development provides low to mid income buyers with construction to permanent loans that allow them to combine construction financing and permanent mortgage into one. The permanent mortgage starts when the construction financing gets over; and since two loans are combined into one, those availing this option will have to pay the closing costs just once. This is a very simple process, quite similar to that of regular home loans.

    USDA loan enables you to build your house with complete financing from the beginning till the end. By getting home financing from start to finish using USDA Loans, you can enjoy the experience owning a home without feeling burdened by the finances.

    Are You Eligible for the USDA Construction to Permanent Loan?

    There are criteria you need to qualify to be eligible for a construction to permanent loan. Firstly, your house must be Owner Occupied (OO) as either a primary residence or a secondary one. Second, only a licensed builder should be involved in constructing your house. And, third, the property should be a one unit, single family detached home.

    What is the Process of Availing Construction to Permanent Loan?

    If you want to start with the application process, you can contact us and we will provide you with the best USDA loan experts. They will guide you through the process of the loan, the rates of interest and the loan terms. To complete the application process you need to submit various things like your construction agreement and financial information. Furthermore, you also have to submit the facade and floor plan of your house, the land contract, and the deed to lot, if applicable.

    How to Meet the Closing Requirements?

    You need to have sufficient money with you at the time of closing, so that you can easily use it for closing costs and down payment. The USDA Loans Direct might use your property as a way of meeting the requirements of your down payment. This is done only when the lot is owned by you.

    Obtain the Home Owners Insurance

    Construction loan calculatorIt is necessary for you to provide a copy of your home insurance policy to USDA Loans Direct. This policy should be prepaid for 12 months and should include a “builder’s risk coverage”. This protects you financially from any damage that occurs during the construction phase of your house like theft.

    How to Draw on Your Loan?

    After your down payment has been consumed, you can start drawing money from your loan to pay for the costs of construction. You do not need to pay interest on your loan amount until you start drawing it. The payments made during the construction phase are interest only and the outstanding loan balance is used to calculate the amount.

    How to Manage Overrun Costs on Your USDA Home Loan?

    You might want to make modifications or upgrades to your loan because of increase in the cost of construction. But you will have to take care of it yourself; as before the modification to your permanent loan, the amount of loan can be reduced but it cannot be increased.

    Construction loan calculatorHow to Modify your Permanent Mortgage?

    After the construction is completed, an occupy permit and final completion certificate is acquired from your local governing jurisdiction by the USDA Loan Direct. Then a final inspection is performed by us, after which we will convert your loan into a permanent mortgage.

    Establishing an Escrow Account

    After completion of your house and modification of the loan, escrow accounts are established for insurance and real estate taxes. The payment of insurance and taxes during construction is your responsibility and so is any reserve which is required while creating your escrow account.

    To know more about home financing from start to finish using USDA Loans, talk to our loan experts today!


    Plot and Construction Loan, Plot and Construction Loans, construction loans.#Construction #loans


    Plot Construction Composite Loan

    You have identified a beautiful plot of land on which you wish to construct your dream home by yourself. Come to DHFL for a composite loan that covers the cost of the plot of land as well as the construction.

    Features and Benefits of DHFL Plot Construction Composite Loan

    1. Tenure Term: The tenure of your Plot + Construction Composite Land loan ranges from 1 to 20 years. The term, however does not extend beyond the retirement age or 60 years whichever is earlier (65 years for self-employed individuals)
    2. Purpose: Avail a Plot + Construction Composite Land loan for purchase of non-agricultural land situated within Municipal / Local Development Authority limits and then construct your house.
    3. Reduce your EMI : With tenure of 20 years, you can reduce the EMI amount on your Plot + Construction Composite Land loan, so that your outgoings every month do not come in the way of your lifestyle and living standards.
    4. Interest Rates: The Interest rate applicable is based on the DHFL’s Retail Prime Lending Rate (RPLR) which fluctuates from time to time based on the money market conditions.
    5. Processing Fees (Non-Refundable) : This is charged as the fee towards processing your loan application:

    Salaried individuals (SAL)

    Self-Employed Professionals / Non Professionals (SEP / SENP)

    *GST as applicable

  • Easy Repayments: You have 2 options for repayment of the loan based on the EMIs payable on your Plot + Construction Composite Land loan:
    1. Through ECS (Electronic Clearing Service) based on standing instructions to your bank
    2. Post Dated Cheques(PDCs) drawn on your Savings/Salary account
  • Plot Construction Composite Land Loan: Get Maximum Tax benefit under Home Improvement Loan scheme. As per Indian IT Rules, the current applicable exemption u/s 24 is ` 2 lacs for the interest amount paid in a financial year and up to ` 1.5 lac for the Principal amount repaid in the same year. Thus up to ` 3.5 lacs is tax exempt, helping you save up to ` 1,08,150 tax annually (Assuming he is taxable at the maximum tax rate i.e. 30.9%).
  • Applicant and Co-Applicant:Plot + Construction Composite Land loans can be applied by individuals. The loan amount can be further enhanced by including an earning co-applicant.
  • Stamp Duty: Stamp duty on the loan documents to be executed shall be paid by the Applicant.
  • Pre-Payments:There are no pre-payment charges if paid 4 times in a financial year after 6 months. For pre-payments above 20% in a financial year, a fee of 2% is charged on the excess amount being so paid. A pre-payment charge of 2% charge on the outstanding amount is applicable if no construction done within 3 years and 3% after 3 years if the borrower is other than individual.
  • Easy Documentation: To enable us to speedily process your Plot + Construction Composite Land loan application, we will require the following:
    1. KYC (Know Your Customer) documents
    2. Proof of Income documents and bank statements as per log-in checklist
    3. Property related documents
  • Documentation Required For Plot Construction Composite Land Loan

    Plot Construction Composite Land loan: Services Charges

    Download Forms

    Click here to view download forms

    Construction loansENQUIRY FORM

    All fields are mandatory

    Construction loansBLOG

    Construction loansCALCULATORS