Category Archives: Construction loan rates

Construction Loans Aimed At Modular Homes

Construction Loan Rates

             About Construction Loan Rates

Construction loan rates are higher as far as a modular home is concerned, in comparison with a standard mortgage. This is owing to the fact that it is , in all actuality, a line of credit that is expected to cover only as much of the cost involved in building your modular home as has been determined well in advance.

Costs like these are inclusive of the price of the building lot, the costs involved in building permits as well as other legal fees that are associated with the construction. That involves the total cost of the modular home as well as the costs involved as far as labor is concerned, and for purchasing extra materials needed for finishing your home.

You might also come across a person who lends construction loans for Modular homes who will agree to the inclusion of the amount of interest required of you to pay during the process of construction and for covering any particular cost overruns. By the time the work on your house is complete; the total amount, which you have run up on the line of credit, is likely to be converted to a standard residential mortgage. More information about construction loan rates is given below.

Things not covered under construction loans for modular homes

You need to determine other ways for financing the early stages of your modular home construction. That includes soil and perk test, building plans as well as the site plan which needs the approval of the municipal zoning board prior to you being able to access the funds from the construction loan as far as a modular home is concerned.

Disbursal of construction loans for modular homes

The work, which is done on the modular home, will not be paid for, till your lender has inspected it thoroughly. Upon completion of the particular phase of the project, should inspection standards be met, payments shall be made to the subcontractors as well as suppliers.

Traditional Mortgages

                            Construction Loans

Akin to traditional mortgages, construction loans for modular homes need you to make a down payment. There are higher chances for this, if the loan that you are requesting for is of a substantial amount or in case you do not own the lot upon which your house is about to be constructed. There are people who lend construction loans for modular homes, willing to give 100% financing even if the person who builds the home does not own the lot in its entirety.

The details regarding construction loan rates, when it comes to modular homes, would have become clear to you by now. Plain wisely to avail of the best loan rates possible!

Features of Construction Loans Offered By FirstBank

Construction loan rates

     Mortgage loans and construction loan rates

FirstBank guides you in finding financing solutions for building a new house or an office structure depending on your budget. FirstBank offers construction loans that could be financed up to 80 percent of the costs or 70 percent of the value. The loan amount is given in allotments.

When 20 percent of the construction work is completed, the borrower can make a draw. It insists on the borrower to make an inspection and title update before requesting for each draw. The construction loan rates of interest are specifically charged on the amount dispersed every month.

How FirstBank construction loan rates work?

During each draw, 10 percent of the initial loan amount is retained for the conversion fees. It could also be possible for you to convert the construction loan to permanent mortgage loan provided you complete the construction. Upon conversion, the bank insists furnishing documents like final inspection, final title update, copy of certificate of occupancy, last year’s property tax bill, updated as built survey, and homeowner’s insurance policy with the premium’s invoice.

Construction loan rates are paid on the amount allotted and the loan amount is offered as a line of credit facility to make the monthly repayments simpler for the borrower.

You could get the Consumer lot loans for buying a land for building your dream home. FirstBank comes with a plethora of alternatives to buy your favorite property and make your dreams come true! Residential construction loans provide finance for speculation or presold 1 to 4 family residential homes. The construction loan rates for residential purposes are priced economically. The borrowers can directly deal with the local relationship officer for getting information on the general proceedings.

FirstBank’s single close construction loans permit you to finance your primary and secondary residences with a single loan. This could help you save from two loan closings, duplication of loan fees and related charges.

Finding financing solutions

         How construction loan rates are charged

Apart from home loans, FirstBank also finances business construction needs. With rising costs in this field, it may not always be possible for you to finance your construction needs all by yourself. FirstBank’s commercial construction loans provide finance from income producing office structures, shopping malls, store houses, showrooms and apartments.

You can also get fixed initial rate mortgages from FirstBank. The fixed rate loan can be availed for five, seven and fifteen years. Once you furnish the necessary documents, the bank will issue the loan based in the order of request after verifying its authenticity.