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?
In our Bozeman Office, we are committed to helping you navigate the complexities of construction loans, ensuring you have the necessary information and support to make informed decisions for your home construction or renovation project.
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 are specialized financial products designed to fund the construction or renovation of a residential property. Unlike traditional mortgages, these loans are tailored to cover the expenses of the building process, including materials, labor, and permits.
- There are two primary types of construction loans: construction-to-permanent loans and standalone construction loans. Construction-to-permanent loans convert into a regular mortgage once construction is complete, while standalone loans require refinancing once the project is done.
Construction loans typically require a higher down payment than regular mortgages, often around 20% to 30% of the project’s total cost. The loan-to-value (LTV) ratio, which assesses the loan amount relative to the property’s appraised value, is also considered.
Interest rates for construction loans can vary, but they are typically higher than those for traditional mortgages. This is because they pose a higher risk to lenders due to the uncertain nature of construction projects.
Construction loans operate on a draw process, where funds are disbursed in stages as the project progresses. Borrowers must provide documentation and inspections at each stage to access the funds needed for ongoing construction.
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With a construction-to-permanent loan, you save time and money by avoiding the need to refinance once the construction is complete. It simplifies the financing process and offers rate security.
Lenders evaluate factors like your credit score, income, the project’s cost, and the loan-to-value ratio to determine the loan amount. They may also consider your down payment.
Yes, you can use a construction loan for major renovations and remodeling projects on your existing home. However, eligibility and terms may vary.
If your project costs exceed the initial estimate, you may need to renegotiate the loan terms with your lender or secure additional financing. It’s essential to plan for contingencies in your budget.
It’s crucial to work with experienced contractors and have a contingency plan in place. If issues arise, communicate with your lender and explore potential solutions to ensure the project’s completion.
“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.
