Introduction To Waltham MA New Construction Mortgage Solutions

If you are evaluating building a new property rather than buying an older home, it is important to find out about the mortgage solutions on the market. Financing new homes is very different from purchasing an existing property. The conditions, rates, and processing may differ. Below are a few different Waltham MA new construction mortgage solutions.

Construction Loans

Construction loans are temporary mortgages that make money available during the building process. There is normally a schedule for when money is released and in what amounts. Specific goals must be attained for release of money to the builder. The expenses, interest calculations, and other terms will differ by mortgage company. Construction loans are treated as risky, thus requirements are normally more strict than regular mortgage programs. A separate loan takes over upon completion of the home.

Construction to Permanent Loans

Construction to permanent loans involve just one closing. While the property is being constructed, interest-only charges are usually required. Once construction is completed, the mortgage becomes a normal mortgage with customary mortgage payments. Interest rates are usually set at the beginning, although the lock for the permanent part of the loan may have a deadline. If your home runs longer than anticipated, the interest rate might change for the permanent loan.

Builder Financing for New Construction

This is the best alternative for home buyers since no additional loan is necessary by the home buyer. Home buyers are normally asked to submit a significant deposit and to cover the expense of upgrades during the building process. Buyers must have a loan when the home is completed.

Waltham MA New Construction Mortgage Solutions

Mortgage solutions on the market will depend on who owns the lot or the builder does. Land that you own normally require a construction loan of some type. Builder financing is often offered within builder-controlled developments. Options can also differ by lender as some maintain special programs. Contact a loan officer to find out about all of the different Waltham MA new construction mortgage solutions and associated costs before making a decision.