Background image for Delano Mortgage Services 106875

Construction Loans

What is a Construction Loan?

A construction loan is a specialized financial product designed to provide funding for the construction or renovation of a residential property. Unlike a traditional mortgage that provides a lump-sum payment for an existing home purchase, a construction loan provides financing in stages as the construction project progresses. Here's a closer look at the key features of construction loans:

Construction Loans vs. Traditional Mortgages

Construction loans differ significantly from traditional mortgages. Here's a comparison to help you understand the distinctions:

How Do Construction Loans Work?

Construction loans follow a structured process to ensure funds are disbursed efficiently and the project stays on track:

Types of Construction Loans

Construction loans come in various types to suit different needs:

Construction Loan Requirements

To qualify for a construction loan, borrowers typically need to meet certain criteria:

Now that you have a comprehensive understanding of construction loans, you're better equipped to embark on your journey to financing and building your dream home. For personalized guidance and loan options, contact us today.

Get Pre-approved for a Construction Mortgage Loan Today!

Start your Pre-Approval Now