Austin Texas construction loans come in a pretty wide variety of structures. These forms of financing are put together in order to fulfill different types of needs. For instance, someone might want to build from scratch on an empty lot, while someone else may find a unique fixer-upper opportunity and want to restore the property. so, read on to learn more about construction loans in Austin Texas, and the types that are available.
Austin Texas construction loans not only come in different varieties, but they are also available through a few sources, including traditional banks, credit unions, and specialty lenders. Here are the most common types of construction loans you’ll find in Austin Texas and beyond:
- Construction only loans. As the name clearly states this type of financing is only used to fund the construction of a property but does not include a mortgage, which must be obtained separately after the building is complete.
- Construction to permanent loans. For a more comprehensive solution, people go with a construction to permanent loan, which pays for the building of a property and also converts to a traditional mortgage thereafter, with terms that can range from 15 to 30 years.
- Renovation or remodeling loans. for borrowers who want to restore or refurbish an existing residence or property, a renovation or remodeling loan is an ideal product.
There’s also another type of financing known as an owner builder loan. However, this type of financing is only available to experience contractors, who can provide proof of their building skills.