Construction Home Loans
Whether you are a first home buyer, investor or own an existing home, Dynamic Loans can provide you with a construction loans that is tailored to you. In order to apply and begin a construction loan, the following is required:
Contract of Sale of the vacant land
Fixed Price building contract for the construction of the home
Council Approved plans
Once these documents are provided, lenders will base your approval on the value of your home, post build. During the building phase, the lender will make payments to the builder on your behalf. While this process occurs, the lender only requires that you pay the interest on amount drawn and paid to the builder, based upon a progress payment schedule. Once your home is finished, the loan is then required to be paid on a standard monthly principle and interest repayment. Inquire today with one of our experienced brokers to evaluate your options.
Services
Working hand in hand with builders
Seamless process from start to finish
Handle progress payments on behalf of clients
Pre-construction assistance
Structuring of out of contract items
The Process Of Building Loans
Progress payments (or draw-downs) are given to the borrower as the construction progresses along. This is vastly different from the usual home loan process of “borrower seeks a loan, borrower receives the entire amount upon approval”. A deposit (or down payment) must be made to pay for the initial material costs of starting the construction project.