Construction Loan for Single project or Multifamily project
A construction loan, also referred to as a 'self-build loan,' serves as a short-term financial solution for constructing homes or real estate projects. Builders or homebuyers opt for this loan to cover initial project costs before securing long-term funding. Due to their perceived risk, construction loans often bear higher interest rates than traditional mortgages. Typically spanning a year, these loans offer options to be refinanced into a permanent mortgage post-project completion, or a new loan can be acquired. During construction, payments may be interest-only, and lenders may disburse funds directly to contractors in stages based on project progression. Construction loans play a crucial role in financing new homes, rehabilitation projects, or restorations. Securing approval can be challenging, as most lenders mandate a 20-25% down payment, posing difficulties for those with limited credit history or collateral. To qualify for a construction loan, borrowers must provide comprehensive project details (commonly known as a 'blue book') and demonstrate the involvement of a qualified builder. These loans are typically available through local credit unions or regional banks.
Lantern Hills Construction collaborates with banks as a qualified builder, offering further assistance and information. For inquiries, please contact us.
Home Improvement Financing for Renovations and Remodeling projects
As individuals gear up for a home improvement project, the reality often sets in that the envisioned project may surpass the available cash on hand. Research highlights that more than 55% of home improvement projects find financial support through various means.
While some homeowners opt for credit cards, despite the associated high interest rates, others invest considerable time and energy into scrutinizing fees and rates from banks and credit unions. Alternatively, a notable advantage arises for homeowners collaborating with a contractor providing in-house financing options. This unparalleled convenience simplifies the financing process, offering a distinct edge for a more seamless and stress-free home improvement journey
HLOC Loan for customers who has Equity on their house.
Whether you're tackling a one-time home improvement or an ongoing project with incremental payments, both home equity loans and home equity lines of credit (HELOC) stand out as excellent financing options. Renowned for their effectiveness in funding projects like bathroom remodels, kitchen renovations, or home additions, these options offer financial flexibility.
Homeowners often turn to HELOCs for major renovations due to lower interest rates compared to personal loans and credit cards. The advantage lies in continually building equity while living in your home, allowing access to your accumulated home equity when needed through a home equity loan or HELOC.
In essence, both options enable borrowing against home equity, yet they differ in significant ways: HELOCs provide financing through a line of credit, while Home Equity Loans offer a lump sum. As an alternative to HELOCs, home equity loans present several distinctions. At Lantern Hills Construction (LHC), we are your certified builder, ready to assist you in securing adequate funds for your project. Connect with us to embark on your home improvement journey.