Loan Types - New Home Construction
When building, instead of buying, there is no existing home to put up as collateral. This raises a different set of circumstances and requirements. Different types of loans are available for this type of deal and some will get you the money for both the land and the home with just one closing with a simple modification when the house is completed. In this case the loan starts out as an interest only loan during construction and then converts to a regular, permanent mortgage (construction-to-perm mortgage).
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