San Antonio construction loans, in different structures and amounts. These debt instrument products are designed in specific ways in order to fit the needs of their borrowers. While some are a little more general-purpose than others, construction loans are often packaged for different needs. Read on to learn more about San Antonio’s construction loans and what to expect.
San Antonio construction loans are available through various lenders, including specialty lenders, traditional banks, and credit unions. Not all lenders will offer the same loan types or the same amounts, but in general, there are four different types of construction loans. Usually, one of these four will be the best fit for a borrower who wants to build or refurbish a residential property. Here are the four most common types of construction loans:
- Construction only loan. as the name clearly states, a construction only loan is just that — It funds the financing of the construction of a property. The borrower must then apply for and obtain a mortgage after the property is built.
- Owner builder loan. This type of construction loan is also fairly self-explanatory — the borrower/owner does the work for him or herself, but this can’t be just anyone. The borrower/owner must have experience in construction in order to qualify for this type of loan.
- Renovation loan. This loan finances the remodeling or refurbishment of an existing property and is not used for new construction.
- Construction to permanent loan. This loan is the complete package, paying for the construction of the property and converting it into a traditional mortgage thereafter.