Dallas Texas construction loans are readily available from a number of sources and come in a few different forms, in order to fit the needs of different borrowers. When someone is considering building a house or renovating an existing property, they often need to finance the project, because they do not have the cash resources on hand. Fortunately, there are some great financing options available in Dallas Texas for construction of new residences, as well as for remodeling properties. Read on to learn more about construction loans in Dallas Texas.
Dallas Texas construction loans, like other parts of the lone Star State, and even across the nation, are generally offered in one of four different structures or forms. Generally speaking, these are short-term loans, save one, meaning their terms range from 6 months up to a year, but there are more options.
Perhaps the most popular is what’s known as a construction to permanent loan, which finances the construction of a new property and then converts over into an actual mortgage, with terms that last from 10 to 15, up to 30 years.
Another popular choice is the renovation or remodeling loan, which of course, is for existing properties needing some TLC. Borrowers take out a renovation loan in order to fix up a residence and might then move into the house as their primary residence, or rent it out.
There’s another option called a construction only loan, which means exactly what the name states — It finances the construction of a new property but that’s all. Thereafter, the borrower must obtain an entirely new mortgage loan.
Last but not least, is the owner builder loan, which means you must be a licensed and experienced contractor to do the work yourself.