Construction Loan Information
by Harmony from USA
Regarding construction loan information: Hi Kate, If you receive a construction loan and have several obstacles that you are facing when the loan matures at 12 months after loan approval, and therefore cannot receive your permanent loan for several months after the maturity date, what is the usual penalty?
Would the homeowners be in jeopardy of losing their home or do they receive penalties until they receive their permanent loan?
In this particular case, the house is completed. Where can I find construction loan information?
Kate Answers: Your Construction Loan Information
Dear Harmony, Years of hope and planning go into building a house. Homeowners feel cheated when a failed construction loan dashes their dreams. I can understand.
Because I can only guess at the obstacles you refer to, I am going to suggest a construction loan information action plan for homeowners in general building a house.
First of all, it is critical to understand the status of your construction loan. Go to Residential Construction Loans - Long Term and Permanent Financing Explained
and in addition find unique FAQs regarding building a house.
Not All Residential Construction Financing Is Created Equal
Not all residential construction loans are created equal. In fact myriads of qualifying variations exist within permanent and long term financing.
To get to the bottom of what is hindering your closing, you must insist on a face-to-face appointment with your lender.
Do your best to make the appointment with an employee who has decision making authority. Review each obstacle to closing, asking for their solution. Ask about penalties to a delayed closing.
At a time when lenders are failing, and for that matter during any market conditions, extreme caution must be given to your specific construction loan information. Know your rights and obligations.
If you are having a hard time interpreting the terms or penalties, consult a trusted adviser such as an attorney. In addition, check your local state's website for information governing construction home loans.
I have provided links to the blockbuster home buying series at the bottom of this page for your convenience. I know you'll like it! By all means, please let me know if you have more questions.
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Ask Kate About Home Buying - Go here to ask me a question.
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