March 13, 2021

Construction Loans

What Is A Construction Loan?

Buying your dream house requires a mortgage, but building your dream house? Well, that requires a mortgage with a twist.

Construction loans are shorter term, higher interest rate loans that cover the cost of building or rehabilitating a house. The lender pays a construction loan to the contractor — not the borrower — in installments as building milestones are achieved. Once building is complete, home construction loans are either converted to permanent mortgages or paid in full.

Qualify Today

  • Debt-to-income ratio: Lenders generally expect your debts to total no more than 45% of your income, and lower is better.
  • Credit score: Most construction loan lenders require a credit score of 680 or higher.
  • Down payment: A 20% to 30% down payment is typically required for new construction, but some renovation loan programs may allow less.
  • Repayment plan: With a construction-only loan, the lender might want to know if you’ll pay the balance in cash or refinance when building is complete

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Amazing company and amazing loan officers. No need to go anywhere else when you have the best company and team right here with Fintech Mortgage.

Fintech Mortgage Association Loan Officers are experienced and great lenders! They are always available to approve my clients and makes sure we get to closing!

Fintech Mortgage Association LLC supports Equal Housing Opportunity
727-310-0955 | NMLS ID 1492187 State
Licensing: Florida MBR2053
WWW.NMLSCONSUMERACCESS.ORG

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449 Central Avenue, Suite 201, St. Petersburg, FL 33701
(727) 310-0955

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