Texas Construction Loans

If you plan on purchasing a new Texas home in a development or want to build a custom home, you will need the help of a Texas construction loan. As opposed to a standard mortgage, which covers the cost of a home purchase, construction loans also need to cover the actual building of the home. One of the most commonly used loans in these situations is known as the "one time close construction loan."

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One time close construction loans are incredibly convenient, as they cover almost everything in one fell swoop. Applicants only need to sign a single set of papers, in which their permanent loan rate is defined. Additionally, these loans provide borrowers with a 12-month construction period, during which they only pay interest on money that has actually been spent. Also known as construction-to-permanent financing, these construction loans are converted to mortgage loans after the certificate of occupancy is issued.

Your Options for Texas Construction Loans

Borrowers also have the option of selecting a rate-lock agreement. These construction loans last through the construction phase. The danger with rate-lock agreements is that you are playing a guessing game, as any construction delay could derail your carefully laid plans. Regardless, it's important to keep in mind that construction loans, as opposed to mortgages, are not designed for the long term.

If you are interested in Texas construction loans, we invite you to contact our experts at Southern Lending Corporation. We offer competitive rates and a number of lending options to choose from. Give us a call at 1-866-614-2700 ext 100 or send us an email for more information.