Do construction loans generally follow the same principles as mortgages?
Yes and no. Some basics: For ANY question you have, I highly recommend a trip to http://www.bankrate.com./ Just type “construction loan” into the search box and several great articles come up. Good luck! Hope this helps. 🙂 You’ll have a lot more luck finding a local lender for a construction loan than you will with an Internet search. Construction loans are riskier than a conventional mortgage. They are “story loans,” meaning that you have to sell the lender on what you plan to do with the money. With a conventional mortgage, the appraisal provides a relative measure of the home’s worth. The construction loan depends on the contractor or homeowner building something of value. Buying $100,000 in materials doesn’t guarantee that you have a home worth that much money. A construction-to-permanent loan will transition you from home builder to homeowner. Typically the loan is interest-only during construction period and c
