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Construction Loans

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A construction loans (also known as a “self-build loan") is a short-term loan used to finance the building of a home or another real estate project. The builder or home buyer takes out a construction loan to cover the costs of the project before obtaining long-term funding. Because they are considered fairly risky, construction loans usually have higher interest rates than traditional mortgage loans.
A construction loan is the type of loan that one gets to finance the construction of a new developing or buildings.
If a construction loan is in use out by a borrower who desires a home built, the lender might pay the funds openly to the contractor rather than to the borrower. The payments might come in installments as the project complete innovative phase of growth. Construction loans can be taken out to finance rehabilitation and restoration projects, as well as to build new homes.

How Can You Use A Construction Loan?

A construction loan for a general contractor can accommodate all types of property and include funds to make payments during the construction period. The most common reasons contractors turn to LBC Capital for financing include:

  • Owner occupied and non-owner occupied development
  • Financing small and large projects
  • Best rates and terms