What You Need To Know About Construction & Renovation Loans

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What You Need To Know About Construction
Renovation Loans
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When most people consider mortgage loans, they
generally think about the typical, long-term
financial commitment to buy a home. But did you
know therere even mortgages available especially
for constructing or renovating a home? Lets
discuss how you can benefit from a construction
or renovation loan.
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Construction loans
Construction loans are known as short-term loans
employed to finance the building of a new home.
As soon as the home is constructed, the borrower
need to refinance into a permanent house loan.
Construction loans generally comes with a term of
one year. Theyre employed to cover the expenses
involved with constructing a custom home, such as
building land, labour, building materials,
permits, and even sometimes permanent fixtures
such as appliances and landscaping.
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Renovation loans
Renovation loans are employed to finance house
renovations, repairs, and revamps. This type of
loan is an excellent alternative if you wish to
restore your present home or wish to buy a house
that requires substantial remodels. Therere
many options for renovations loans two of the
most common are FHA 203(k) and FNMA Homestyle
loans. FHA 203(k) loans are given by the Federal
Housing Administration. They give funding for
repairs in one mortgage on a main dwelling and
have a minimum down payment of 3.5
percent. Therere 2 kinds of 203(k) loans
Standard FHA 203(K) loans which let borrowers
finance rehabilitation costs starting at 5,000
and have no maximum. Streamline FHA 203(k) loans
offer renovation repair funding for up to
35,000. Then again, therere FNMA Homestyle
loans which are given by Fannie Mae and let you
buy and renovate a second home, primary
residence, or investment property with a minimum
down payment of three percent in one mortgage up
to the lending limit.
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Are you planning to construct your dream home or
renovate your present dwelling? Talk to a Low
Rate Mortgage Lender in Oakland CA to know which
loan makes the most sense for you. The
interdependent mortgage broker here at All
California Lending can help you connect with some
of the most highly reliable low rate mortgage
lenders in Oakland CA. Whether you are
purchasing your first home, refinancing your
existing home, buying an investment property or
are in need of any other real estate financing,
All California Lending can help! Call us on (877)
462-3422!