Build your perfect home with Mann Mortgage’s customized Construction Loans!
Construction loans make building Your Dream Home surprisingly easy and affordable.
What are construction home loans?
Construction Loans serve as the financial foundation for your building dreams. They encompass two primary phases: construction and permanent financing. During construction, you receive funds to cover building expenses, with interest-only payments. After completion, you transition to principal and interest payments.
Interest rates on Construction Loans typically differ from traditional mortgages due to the inherent risks. Lenders often require a lower loan-to-value ratio, typically around 80%.
To secure a Construction Loan, meeting specific qualifications is crucial. This includes a solid credit history, a detailed construction plan, and a qualified builder. Adequate documentation, proof of income, and financial information are also necessary.
Not sure where to get started? That's okay too, we're happy to meet you where you're at and direct you to the right place or person.
The MannMade construction loan process.
- Construction Loans are designed to fund the building or renovation of residential or commercial properties. They provide borrowers with the necessary capital to cover construction costs, making it possible to bring their vision to life.
These loans typically consist of two phases – the construction phase and the permanent financing phase. During construction, you receive funds to cover building expenses. After completion, you transition to a permanent mortgage or refinance.
Unlike traditional mortgages, Construction Loans usually have variable interest rates. During the construction phase, you make interest-only payments on the outstanding balance. Once construction is complete, you switch to principal and interest payments.
Lenders assess the loan-to-value ratio to determine your eligibility. This ratio compares the loan amount to the appraised value of the property. Lenders often require a lower LTV for construction loans, typically around 80%.
Securing a Construction Loan involves meeting specific criteria, including a solid credit history, a detailed construction plan, and a qualified builder. Lenders may also require a substantial down payment.
Applying for a home has
never been easier
Our quick and secure process takes less than 10 minutes to apply.
Learn more about
construction loans
Yes, Construction Loans can be used for renovations and additions to existing properties. They are not limited to new construction projects.
Interest rates for Construction Loans are often slightly higher than those for traditional mortgages due to the higher risk involved in funding a construction project.
It’s essential to have a contingency fund in place. If unexpected expenses arise, you can use the contingency fund to cover them, ensuring your project stays on track.
Construction Loan terms vary but are typically between 12 to 24 months. However, extensions may be possible if needed.
You’ll generally need to provide a detailed construction plan, financial documents, proof of income, and information about your builder’s qualifications when applying for a Construction Loan.
“I was always in the loop on my loan process. I loved the one-time close construction loan. It saved me thousands to be able to lock in the interest rate.”
Josue Gabriel Lopez
Let's get you home.
Borrow up to 97% of a home’s value with as little as 5% down. Our local loan experts will help guide you.
