Can I get a construction loan to build my own house?
To build your own property, you’ll usually have to apply for a construction loan, which differs to a regular home loan. Lenders don’t tend to offer traditional loans to those wanting to build their own properties – the risk involved puts some lenders off entirely.
Do you need a deposit for a self build mortgage?
With a standard mortgage you could put down a deposit of around 10% to 20%, but with a self build mortgage, you need to put up more of the cash up front. That means you would need around at least 25% of the cost in the form of a mortgage deposit.
How do construction loans work when you own the land?
Put simply, if you already own land, the equity that you have in that land can be used as your down payment for your construction loan.
Is there a fee for an owner builder loan?
Due to the added risk of construction loans, lenders generally charge a higher fee for them. Owner-builder loans are no exception, so be prepared for the cost. In many cases, the lender will further protect their investment by requiring two closings: one before you break ground, and the other when construction is complete.
Do you have to be a contractor to get a Home Builder loan?
Build from your own house plans, not ours. You do not have to hire a licensed contractor or project supervisor to qualify for our construction loan. No application fee and no credit report fee. This means you can find out if you qualify, and if you do, what the conditions and terms will be without incurring any charges.
What can you do with a Home Builder loan?
By building your own home, you can create instant equity. This gives you the ability to refinance, take out a second mortgage, or even sell the home once it’s built. The same amount of equity can take years to build up normally, making the loan an investment with quick returns.
How to apply for a home construction loan?
Apply for your home construction loan online today by clicking the button below, or call 1-800-277-7703. If you still have questions, schedule an appointment with one of our mortgage specialists.