Waterdown new home construction loans and mortgages are pretty common these days with all the different construction projects and developments going on in the area.
Most of the construction financing is being acquired by developers and builders completing property holdings for sale to the public. And for builders, property owners, or developers, we provide a variety of construction loan types including builder loans, land development mortgages, and construction bridge financing.
For the individual home owner looking for a Waterdown new home construction loan, there are also a number of options to choose from. Many people will first try to arrange construction financing through their own bank which is a logical first step. But if they fail to qualify, then a private mortgage construction loan is likely going to be the next most likely option.
Most people don’t realize that private mortgage construction financing is considerably larger than bank construction loan programs on the whole. This is due mostly to the fact that with a private construction mortgage for a new home build, the take out or long term mortgage that consolidates the construction and land costs at the end of the project does not typically need to be in place at the start of the project. In the case of a bank construction loan, both the construction financing and the take out mortgage must both be approved prior to the commencement of construction. This is because the bank or institutional lenders will only provide construction loans for new home builds if they can secure the longer term mortgage at the end of the process.
With private mortgage construction financing, the long term or take out mortgage can be sourced out after construction has begun in most cases, providing the property owners with more time and flexibility to locate the best deal available to them on the market.
Regardless of the type of lender you choose to go with (bank or private), it would be a good idea to work with a construction mortgage broker that can not only help you locate the best construction financing fit for your project, but also help you with both the application and loan administration process that goes with it.
If you are in need of a Waterdown new home construction loan, give me a call and we’ll go over your available options together.