Construction Loans
At Sky Financial, we understand the unique financing needs of construction loans and offer specialized programs tailored to meet your specific requirements.
We do not charge any front-end or back-end fees, and in certain mortgage plans, we even waive cancellation fees. Additionally, we offer competitive construction rates and flexible draw schedules to align with the progress of your construction project.
Our mortgage programs are designed to support you throughout each stage of construction. As your project progresses, you can access funds at key milestones, such as lock-up (35% to 55% completion), drywall (approximately 75% completion), and completion (100% complete). Moreover, with approval, additional draws may be available to further facilitate your construction financing needs.
At Sky Financial, we are committed to helping you thrive by providing tailored construction loan solutions, competitive rates, and flexible terms. Our experienced team is here to guide you through the process and ensure you have the financing you need to bring your construction projects to fruition. Contact us today to discuss your construction financing needs and explore how we can assist you.
Frequently Asked Questions about Construction Loans
Remember, specific details and requirements may vary depending on the lender and the construction loan program. It’s important to consult with a mortgage professional from Sky Financial, to understand the specific terms and conditions that apply to your situation.
What is a construction loan?
- A construction loan is a type of short-term financing specifically designed to fund the construction of a new building or home. Unlike traditional mortgages, construction loans are typically disbursed in stages or “draws” as the construction progresses.
How does a construction loan work?
Construction loans work by providing funds at different stages of the construction process. The loan amount is typically disbursed in installments, known as draws, based on the completion of specific construction milestones. Interest is usually charged only on the amount disbursed.
What are the requirements to qualify for a construction loan?
Qualification requirements for construction loans may vary among lenders. However, common requirements include a detailed construction plan, a qualified builder or contractor, a down payment or equity in the project, good credit, and the ability to repay the loan.
Can I use a construction loan for renovations or remodeling?
Yes, in addition to financing new construction projects, construction loans can also be used for significant renovations or remodeling projects. These loans provide the necessary funds to cover the costs of construction or renovation, including materials, labor, and permits.
How long is the term of a construction loan?
he term of a construction loan is typically short-term, usually ranging from six months to two years. This allows for the completion of the construction project.
After Construction is completed the traditional Mortgage Begins.