OMJ is a commercial mortgage broker that wants you to get the right construction loans that suit your needs. Building your own home can be an exciting experience. You get to construct a house that’s based on your family’s needs, budget, and lifestyle.
Most people don’t have the money on hand to pay for one of these projects. These tips will help you get approved when you’re looking for financing.
What These Construction Loans Cover
Understanding what this kind of loan covers is important. Although every project is different, these types of financing generally cover the land, any fees, permits, and plans as well as the materials and labour.
These also cover other expenses like closing costs and a contingency reserve in the event the project overruns the estimates. Understanding the different types is also critical to picking the right one.
New Construction Loans
Borrowing money to build a new home means there’s no collateral. Generally, that means lenders will be a little nervous so you should expect a comprehensive look at the architectural plans, your finances, and the builder you’re planning on using.
How The Money Get Distributed
The way the money gets disbursed is also different. The lender’s payout of cash to your builder is what are called draws. Each one of these lines up with a phase of the build.
Inspections are required before each installment or draw is released.
There is another type of construction loan that is popular with homeowners.
Home Remodel Loans
If your home needs a lot of work, we often suggest these loans. They are generally secured against your property. Getting this type of mortgage renovation financing depends on the market value of your property, the home’s equity, and your financial situation.
OMJ Mortgage Capital has a team of senior ex-bankers that can help with construction loans and other types of mortgages. We are pleased to exceed your expectations with our impressive track record and excellent service.
