Individuals used to live their entire lives in one home. Things have changed. Today, homeowners stay in one house an average of ten years before they move to another. Other individuals decide to build their dream home themselves, which makes you an Owner Builder. Construction loans are lent with a series of restrictions. As an Owner Builder, your application is going to differ from a traditional mortgage, too.
Let’s take a look at a couple of details for this loan applicant status.
Definition
This loan application status is defined as someone who is going to own the home after it’s built. Additionally, you are the builder and the land owner. You might subcontract tasks, but you are the main contractor on the job.
Since you own the property, are purchasing all the materials, and are building the house, you are taking on more risk and expenses. Construction projects face delays and surprises at least once. The lender wants to ensure that if something goes wrong, they are not going to take a hit on the outstanding loan amount.
Loan Rules
Construction loans are dispersed in increments, not all at once. You might qualify for a similar instrument. Mortgage House prides itself on being forward-thinking and innovative. We look forward to working with clients like yourself. So, we recommend that you schedule an appointment with one of our lending specialists who can dive deeper into the details of the project.
They look over the application and your financial circumstances. The goal is to find out the timeline, the number of permits that must be secured and where you are in the process. Thereafter, we can begin discussing loan terms and interest rates.
Owner Builder Conclusion
For more information on Owner Builder home loans, give us a call. We also offer additional financial instruments such as the business loan and online calculators.
