Constuction Loans

There are three main types of home construction loans:

1. Construction-to-permanent: You borrow to pay for construction. When you move in, the lender converts the loan balance into a permanent mortgage. It’s two loans in one.
2. Stand-alone construction: Your first loan pays for construction. When it’s time to move in, you get a mortgage to pay off the construction debt. It’s two separate loans
3. Fixed and Flip: You obtain a loan to purchase and rehab the property. Once the property is finished you sell it and pay off the loan.