Construction Loans for New Builds and Re-Builds
Construction loans can be more challenging to qualify for, and many mortgage companies don't do construction loans because the collateral doesn't exist until it's built, making these mortgages a higher-risk product. But at Cleveland Mortgage we have all your mortgage solutions - including for new construction and re-builds.
Do You Get a Loan with the Builder or on Your Own?
Many Cleveland area builders and home construction companies partner with lenders to offer financing options for your new construction project. However, there are many benefits to work with Cleveland Mortgage to get your loan and let the builder focus on construction instead of financing. Because our mortgage company works with several lenders, when one bank increases construction loan restrictions, we're able to pivot to another lender to deliver the best construction loan for your new home.
- as little as 10% down (90% LTV)
- one time close
- construction period up to 12 months
- tear down and rebuild is permitted
Renovation Loan or Construction Loan?
Some new home buyers ask about construction loans when they're better suited for our renovation loan mortgages. Construction loans are for borrowers that are building a home on an empty lot or piece of land. If you are gutting a home and renovating it, that is usually a renovation or rehab loan. Contact us to review your construction and rehab loan options.
- Combine purchase price with renovation costs
- Renovation costs limited to 50% of estimated future value of the home
- Appliances and luxury items can be included in most cases