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Those interested in buying a home know that a mortgage may be involved. But what about if you plan to build your new home? The majority of us can't afford the costs of building a new home outright, and getting a mortgage for a home that doesn't technically exist yet can be a difficult process. This is where a construction loan comes in.
"A construction loan is a short-term loan that you can use to front the cost of building your home," says Michael Litzner, Broker of Century 21 American Homes. "These loans are set for a specific length of time, typically around one year."
When construction on your home is complete, the homeowner then refinances by applying for a new loan to pay off the initial construction loan. "These second loans are called 'end loans,'" Litzner explains.
While construction loans are helpful, they can be difficult to get. Below are some of the strict qualifying requirements that must be met before you can be considered.
Many in the housing industry are wondering not only what today's home buyers really want, but also what they are ready to leave behind in light of current economic realities. A new study recently released by NAHB, What Home Buyers Really Want, was designed to answer these questions, and more specifically, to provide the most current and accurate information on buyer preferences so that NAHB members can deliver the home (and community) that today's buyers want and are willing to pay for.
So what do home buyers really want? The first answer is energy efficiency. Four of the top most wanted features involve saving energy: 94 percent of home buyers want energy-star rated appliances, 91 percent...
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