PARAMOUNT DOES CONSTRUCTION LOANS
If you're here, you probably are interested in using a loan for construction purposes. These types of loans fall into two categories: Renovation, and Construction. Within those two categories will be a number of different loan types we'll cover in a moment...
Why use a construction/renovation loan? A construction loan allows you to borrow based on the future value of your home once the project is complete. Additionally, depending on the loan type, you may be able to access funds at rates similar to a traditional mortgage without paying any additional points!
BIENVENIDOS A TODOS
En Paramount Loan Services, entendemos que navegar por el proceso hipotecario puede ser un desafío, especialmente si el español es tu primer idioma. Por eso, ofrecemos nuestros servicios en español, asegurándonos de que te sientas cómodo e informado en cada paso del camino.
One close construction loans
A one close construction loan (also called a construction-to-permanent loan) combines the construction financing and permanent mortgage into a single loan with one closing process. This saves you money on closing costs and simplifies the process. During construction, you typically make interest-only payments on the funds disbursed, then the loan automatically converts to a traditional mortgage once construction is complete. Build the home of your dreams from the ground up with this loan.
Préstamos FHA:
Una Opción Accesible
Los préstamos FHA son una excelente opción para muchos compradores, especialmente aquellos que son nuevos en el proceso de compra de vivienda. Estos préstamos están diseñados para facilitar el acceso a la propiedad con requisitos de pago inicial más bajos y condiciones flexibles. Nuestro equipo está listo para guiarte a través del proceso, asegurando que comprendas cada paso y encuentres la mejor solución para tus necesidades.
Conventional renovation loans
A conventional renovation loan combines home purchase (or refinance) and renovation costs into one convenient mortgage. This flexible financing solution lets you buy a fixer-upper or renovate your current home with a single loan, using the future value of your improved property. You'll get competitive interest rates, and the ability to make almost any non-luxury improvement that adds value to your home.
FHA 203-K loans
This government-backed loan program allows you to finance both the purchase and renovation of a home with a single mortgage. There are two types:
Limited 203(k): For non-structural repairs and renovations up to $75,000, can be performed by the DIYer, saving you on hiring a contractor!
Standard 203(k): For major structural repairs with no repair cost minimum or maximum. These loans are popular because they require only 3.5% down payment and have more flexible credit requirements than conventional loans.
Private money construction loans
These are short-term loans from private lenders that focus on the property's value rather than your creditworthiness and income. They offer quick funding and flexible requirements. They're often used by investors and builders who need fast financing for fix and flips or don't qualify for traditional construction loans.
Maybe you already have equity?
As we mentioned before, these loan programs allow you to borrow based on the future value of your home, which is terrific if you are looking at buying/building, or have recently bought your home. But what if you've had your home for years and have built a good chunk of equity? We can use a 2nd lien HELOAN or HELOC on to pull out that equity and use it for your project.
There's some advantages here: Keep your first mortgage in place and don't lose your low interest rate.. Using a 2nd lien to access funds means a much less intensive loan process..
It's quite unlikely you're going to know what the right loan product for you is even after reading this, but don't feel bad. Just give us a call and let's clear up the confusion and get your project started!
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