construction mortgage Archives - Smart Mortgage Centers

Down Payments: These loans often require a significant down payment, sometimes up to 20%. Lenders see construction projects as risky, and the down payment helps mitigate this risk.
Strong Credit Requirement: Because of the inherent risks involved with home construction, lenders often require borrowers to have a higher credit score compared to traditional mortgages.
Interest Rates: Though you might get the convenience of a single loan, the interest rates can sometimes be slightly higher than those of traditional home loans.
Builder Restrictions: Some lenders may have a list of approved builders or may need your builder to be vetted, which can limit your choices.

If you're in the market to build your dream home rather than buy one that's already constructed, you may have come across the term "construction to permanent home loan" or "one-time close loan". This unique mortgage product has been designed...