Before you sell yourself short, talk to a mortgage company. Many lenders are more than happy to lend you money for a lucrative project, because it means profitable business for them too. Construction loans are the backbone of many mortgage company portfolios, and if you own a vacant lot that has market value, lenders will normally lend you money based on the collateral of the vacant lot. You get cash to build a new house, and after you sell the completed project you can pay back the loan and pocket the profits.
Other construction loans allow you to borrow money from the builder's own sources, in the same way that you might borrow money from an auto dealer to pay for the car you buy from them. Construction companies with their own mortgage sources may charge you higher interest rates, however, than conventional lenders.
Shop around for construction loans. More often than not, deciding on a builder and the best source of funds will take longer than it actually takes to build the house, but it is time well spent. A few interest rate points can make a difference of thousands, or hundreds of thousands of dollars. Talk to lots of lenders and buil
· Gordon Pate is a 5th generation resident of Bryan-College Station, his extensive knowledge of the area and its culture helps you get acquainted with Bryan-College Station Real Estate. He offers various homes for sale college station properties that satisfy what you need and what you want.
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