New York Construction Loan
Construction loans are not very easy to procure. The terms, rates
and fees may differ widely. Construction loans are usually a
short-term and interest only loan. Such a loan is usually replaced
by a regular mortgage on completion of construction.
Construction loans are also known as story loans. That means that
the lender has to know all the details behind the planned
construction before they're willing to lend you money. There are
some common features to a construction loan. A construction loans
typically requires interest-only payments during construction and
becomes due upon completion. Completion for homeowners here means
that the house should have its certificate of occupancy.
Types of construction loans:
On completion of construction this type of loan is automatically
reverted to a standard mortgage .The construction-only loan
becomes due for payment on the completion of the construction. At
this stage, it must be decided whether it is going to be paid off
or replaced by a conventional mortgage. Construction loans are
paid out in various stages of construction. These stages typically
After Grading of site and pouring the foundation.
After completion of Framing of the house.
After Plumbing and Wiring installation work has been accomplished.
After Exterior completion.
After Installation of interior surfaces.
After Installation of cabinets, fixtures and trims.
After Painting and other interior finishes and so on.
Construction loan companies differ in their lending patterns.
Below mentioned information is required before pursuing for a
A person who is self-employed should have the profit and loss
statements along with tax returns and balance sheets for the past
An employer needs to provide employer's address and phone number
at the time of the loan application. Most lenders may also require
recent paychecks and information on bonus, commissions and average
Personal information such as social security number of your and
other co-borrowers, marital status, number and ages of dependents
and current address and telephone number are mandatory for any
loan application. To sum up a complete picture of your personal
asset and liability information is a must. and also other sources
of income such as rental property, disability payments and child
support also need to be mentioned.
Details about the plot of land upon which the construction is
going to take place. Complete documentation of the home building
project – working, drawings along with materials and construction