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A must have if
hiring a contractor!
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Buying and Financing an Unfinished Home
How to get a Construction Loan and Financing
an Unfinished Home
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A
HomeAdditionPlus.com visitor recently
explained that she wanted to buy an unfinished home but could not get a
conventional home mortgage because it was unfinished. As I indicated to her
there are a couple of mortgage financing options to consider when wanting to
buying an unfinished home. The first choice is to visit a bank
and inquire about obtaining a construction loan for financing an unfinished home.
Many banks frown upon offering homeowners construction loans, however with a
good building plan and cost estimates in place it is sometimes possible.
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The chances are increased for
obtaining a construction loan if the homeowner plans to make the
unfinished home construction project a full time job (e.g. working as the
General contractor.)
The second choice is to find a general contractor that will purchase the
unfinished home on your behalf, via a home construction loan, and then sell
you the home upon its completion. Of course a contract needs to be in place
between the general contractor and the homeowner.
Construction loans can frequently be converted over into conventional loans
(e.g. 30 year mortgage) so this should be considered when applying directly
for the construction loan or going through a general contractor.
How to Finance your Home Remodeling Project -
can help provide funds for your new home improvement project if financing is
required.
Related Articles on Financing a Home Improvement
Project:
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