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?
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 serve as the foundation for building your dreams. These loans are specifically designed to fund the construction or renovation of residential or commercial properties.
- There are primarily two types of construction loans – one-time close loans and two-time close loans. One-time close loans combine the construction and mortgage into a single package, simplifying the process. Two-time close loans involve separate loans for construction and permanent financing.
- Interest rates on construction loans tend to be higher than traditional mortgage rates. However, they typically have variable interest rates during the construction phase, which can be more flexible.
- LTV ratios play a crucial role in construction loans. Lenders typically require a minimum down payment, which can range from 20% to 25% of the project’s total cost.
- Construction loans have a finite timeline, typically ranging from six to eighteen months. During this time, the borrower makes interest-only payments, and once construction is complete, the loan transitions into a traditional mortgage.
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To apply for a construction loan, you’ll generally need a detailed project plan, a budget, proof of income and assets, and a good credit score. Our Big Spring office can guide you through the specific requirements.
Yes, construction loans can also be used for substantial renovation projects. Whether you’re building from the ground up or giving your existing property a major facelift, our Big Spring office can help you explore your options.
The choice between these two loan types depends on your preferences and financial situation. Our experts at the Big Spring office can assess your needs and guide you toward the most suitable option.
Overruns can happen, and it’s important to have a contingency plan. Some lenders may allow modifications to the loan to cover increased costs. It’s crucial to discuss this with our Big Spring office and have a clear understanding of your lender’s policies.
In some cases, the interest paid on your construction loan may be tax-deductible. However, tax laws can be complex and subject to change. It’s advisable to consult with a tax professional and our experts at the Big Spring office to explore potential tax advantages.
“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.
