“Waterdown New Home Construction Loans Are Available From Bank and Private Lending Sources”

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.

Click Here To Speak With Construction Mortgage Broker Joe Walsh

The post New Home Construction Loan first appeared on Ontario Construction Loans And Mortgage Financing.

“Here Are The Different Types of New Home Construction Loans And Their Related Requirements”

New home construction loans are typically either provided for a home builder that is building out lot inventory for the purposes of resale, or for a self build scenario where the eventual home owner finances the project all the way through construction.

For home builders, new home construction loans will require the builder to provide home owner insurance and have sufficient equity in the project to support the construction loan amount. If the builder owns a number of lots or even additional property, a lender can take real estate that is unrelated to the construction project as security.

The key elements for home builders is the equity they have in the project or can provide in the form of other real estate security, and the sale status of the home being built. If the home is pre-sold subject to the completion of construction, there are going to be more construction financing options available versus scenarios where builders are creating inventory for future resale.

For self build scenarios, new home construction loans can be secured through major banks and mortgage companies provided that the borrower is able and prepared to qualify for both the construction loan and the long term take out mortgage at the same time.

For the most part, banks don’t do construction loans unless they can get the long term mortgage asset as they are otherwise not interested in the risk associated with construction projects.

If a self builder can’t qualify for both construction financing and take out loan through their bank or similar institution, then they can apply for a new home construction loan via a private lender.

This can also be a benefit in that the private may be able to provide a higher loan to value ratio than the bank and the private lender may not require you to have the take out mortgage in place before construction begins, giving you more time to shop around for the best deal.

If you’re a builder, developer, or property owner looking to do a self build project for a new home, give me a call so I can quickly assess your requirement and provide relevant new home construction loan options for your consideration.

Click Here To Speak With Construction Mortgage Broker Joe Walsh

The post New Home Construction Loans first appeared on Ontario Construction Loans And Mortgage Financing.