Rick Lindsay

A construction loan is a short-term mortgage to build a home. There are different types and variations, but to make it as simple to understand as possible, you take out a construction loan when you want to build rather than buy a home. The funds from a construction loan cover the construction costs for the house and any permanent fixtures, including land, labor, materials, and services like construction plans and permits, etc.

With construction loans, the builder provides an estimate of construction costs and a project timeline prior to loan closing. Your lender manages your payments (called draws) directly to the builder as construction moves forward. Once construction is complete, the construction loan is either converted to a permanent mortgage or paid in full.

The cost to build a house depends on a variety of factors like the size of the home you’re building, materials being used, customization and labor costs and geographic location. Other things to consider include land purchase, permits and fees, utility hookups and landscaping. If land isn’t included, this can reduce your costs, especially if you already own a lot

First thing you should do is consult with a local mortgage lender and if you are a Veteran, there are 100% financing options available. A CCM loan officer can help you navigate the various loan programs and find the best fit for your situation. You could also consider using land equity: If you own land, this can be an asset to leverage when securing financing.

Building a house may take up to 12 months, but the exact timeline depends on several factors like weather, permit and inspection speed, material and labor availability, custom vs. cookie-cutter design, and size and complexity of the house. Your builder should provide a detailed timeline for you.

When you’re comparing the costs of building a house versus buying one, you have two choices to consider. Building a house puts you in control of everything from the materials to the square footage to custom designs. When buying an existing house, the condition, competition from other buyers and market conditions all play a factor in how much you spend.

Los costos de refinanciamiento generalmente oscilan entre el 2 % y el 6 % del monto del préstamo e incluyen cargos como tasación, seguro de título y costos de cierre. Factores como el tipo de préstamo, la ubicación y el puntaje de crédito pueden  afectar significativamente  estos gastos. Nuestro equipo puede ayudar a proporcionar estrategias  que  pueden ayudar a minimizar los costos.

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Para determinar cuánto puede pagar por su vivienda, le recomendamos que evalúe su situación financiera. Esto incluye sus ingresos, gastos y relación deuda-ingresos, para garantizar que su hipoteca se ajuste cómodamente a su presupuesto. Una pauta general es gastar no más del 28 % de sus ingresos brutos mensuales en costos de vivienda y el 36 % en deuda total.

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Un buen puntaje de crédito generalmente comienza en 620 para préstamos convencionales, mientras que los préstamos de la FHA y VA pueden aceptar puntajes tan bajos como 500, aunque los puntajes más altos ofrecen mejores términos. Un puntaje de crédito sólido puede ayudarle a asegurar tasas de interés más bajas, lo que le permite ahorrar dinero significativo durante la vigencia de un préstamo para vivienda.

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Una línea de crédito sobre el valor acumulado de la vivienda (HELOC) es una línea de crédito renovable que permite a los propietarios pedir prestado contra el valor acumulado de su vivienda. Las HELOC funcionan como una tarjeta de crédito, lo que brinda acceso a fondos hasta un límite establecido, que puede utilizarse para gastos como renovaciones o consolidación de deudas. Solo paga intereses sobre el monto que pide prestado, y los términos de pago generalmente incluyen un período de retiro seguido de un período de pago.

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Para calcular los pagos de su hipoteca, comience con el monto de su préstamo, la tasa de interés y el plazo del préstamo. Su pago dependerá del interés cobrado a lo largo del tiempo y del cronograma de pago. Puede usar una calculadora de pago hipotecario mensual o comunicarse con nosotros para obtener más información.

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Non-QM loans use expanded home financing criteria to give borrowers income and credit flexibility. From qualifying with bank statements or 1099 income to purchasing investment properties, Non-QM loans open doors to homeownership many don’t realize are available.

Also known as Investor Cash Flow loans, DSCR loans are designed to help real estate investors secure financing with their rental property’s cash flow. Instead of relying on personal income, DSCR loans use the debt service coverage ratio (DSCR) to qualify.

DSCR is calculated by dividing the monthly rental income by principle, interest, property taxes, homeowners insurance and association dues.

Since Non-QM loans don’t follow traditional guidelines, they’re considered riskier. That’s why lenders often require a higher down payment, interest rate and other terms.

But Non-QM loans are a safe financing option that benefits many homebuyers. Talk to a CCM loan officer to learn what’s right for you.

Bank Statement loans allow you to qualify for a mortgage using your bank statements instead of tax returns. These loans are designed for borrowers who have strong credit and finances but don’t have traditional income, like self-employed workers.

To qualify, you’ll use the average of your deposits over a 12- or 24-month period. If your work doesn’t provide a W-2, this may be the loan for you.

ITIN loans give you a way to qualify for home financing without a Social Security number. Instead, your Individual Tax Identification Number (ITIN) makes homeownership possible.

At CrossCountry Mortgage, we provide numerous ways to qualify using an ITIN. Bank statements, liquid assets, 1099 income and more can all be used to buy a home with our ITIN loan.

No. Conventional loans follow criteria established by the Consumer Financial Protection Bureau (CFPB). Non-QM loans use different standards that provide flexibility for borrowers who may not meet conventional requirements due to the type of home being purchased, financial circumstances or non-traditional income or employment.

1. Contact your CCM loan officer to find the right renovation loan.
2. Complete a loan application with required documentation.
3. Choose a reputable contractor and review your project in person.
4. Provide the contractor’s estimates and validation documents to verify their qualifications.
5. Complete underwriting for review of all your loan documents.
6. Close your loan and start your renovation.

• Cost factors: Costs vary widely based on project scope. You’ll need to understand your renovations and get contractor estimates.
• Budgeting tip: Add a percentage for unexpected costs, including changes later in the project.
• Loan options: CrossCountry Mortgage offers renovation loans from cosmetic upgrades to complete expansions.

Renovations may be tax-deductible or qualify for a tax credit, but only a professional tax advisor can guide you. Four categories of home renovations may qualify for tax breaks:

• Home office improvements
• Energy-efficient home improvements
• Improvements for medical care
• Rental property maintenance

While you could use a credit card or personal loan, a home loan will give you a better interest rate and financing to suit your project and your goals. CCM has several loans that combine your purchase or refinance with your renovation costs and provide disbursement management, so your contractor is paid correctly and on time.

The time for your renovation will depend on the project’s scope. While cosmetic work might take a week, a complete renovation could take a year or more. Loans have different time limits, too, so be sure to discuss this with your CCM loan officer. Experienced contractors and remodelers will tell you to allow extra time (within reason) to keep your stress level down and be prepared for delays.