What is a New Construction Loan?
A new construction loan, also called ‘construction mortgage, ‘home construction mortgage’, ‘self-build’ mortgage, ‘home builder’s mortgage’, or a ‘progress draw mortgage’ is a loan where the money borrowed is utilized to help pay for the building of a new house or property.
As work advances, the money will be released to you in installments, sometimes known as draws. The draw schedule is based on construction progress. The initial appraiser will conduct a progress inspection to confirm the construction’s status.
Questions? Ready to get started?
