Want to take your dream home out of your mind and into reality? Have you ever thought about a construction loan? No? Now might be a good time to start. It’s used to fund your new nest, which can be a place you’re actually living in or an investment property of sorts.
So…how does a construction loan work?
Easy. This is a loan that make the construction of dwellings possible. The funds are drawn down as the place is being built, as opposed to dumping one big lump sum down. The lender will typically initiate a countdown, setting a time limit on the draw-down period. This is typically 12 months, but just double check with your situation, as different lenders can have different criteria.
Who you gonna call? And no, the answer is not Ghost Busters.
Not only do different lenders have different policies when it comes to construction loans, but some, well, just don’t offer them at all. Sorry. We know this can make it hella confusing to find a fitting lender, but never fear, your Lending Hand Finance broker is here to guide you.