Welcome to Construction Loans Guide
Texas Home Construction Loans Article
. For a permanent link to this article, or to bookmark it for further reading, click here.
The Difference Between Construction and Mortgage Loans
from:There are so many things that you need to know when you are thinking about owning your own home. Since it is such a big purchase, there is a lot of paperwork and decisions involved. One of the bigger decisions is whether or not you want to build a house, or buy one that has already been lived in. Most people go with the latter. This is because they think that they could never afford to build their own house. After all, most people who do are very rich. This is only because rich people know the real truth. Although there are differences between construction and mortgage loans, they are both accessible to everyone.
If you can qualify for a mortgage loan, you can qualify for a construction loan. Most people don't even realize that. The biggest concern that people have is how they are going to afford to live in an apartment while the house is being built. They assume that you pay monthly loan repayments like you would with a mortgage loan. That is simply not true. The biggest difference between construction and mortgage loans is the repayment schedule.
Mortgage loans need to be repaid in monthly installments. These installments usually go on for about thirty years. Construction loans are very different. While the house is being made, all you pay is interest. This means that you will be able to afford other accommodations while the house is being constructed. Once the house is done, though, things are a different matter. Instead of paying in installments, you have to pay the loan of completely. This is another big difference between construction and mortgage loans.
While there are differences between construction and mortgage loans, there is a chance that you could have both. There is such a thing as a construction to permanent loan. This means that the loan acts as a construction loan while the new house is being built. The changes when it is done, though. Instead of paying it all at once, you can pay it in installments because it turns into a mortgage loan. This is the best and most affordable option.
Yes, there are all sorts of differences between construction and mortgage loans. That does not mean that any one of them is better than the other. It really depends on your preferences. If you would rather not wait for a house to be built, a mortgage loan is perfect. Then again, if you would rather have a house that was made to your exact specifications, then you should go with a construction loan.
Texas Home Construction Loans Specific links
Texas Home Construction Loans News
Grant Funds Help Habitat for Humanity Victoria Place Three Families Into New Homes
VICTORIA, Texas -- NewFirst National Bank and the Federal Home Loan Bank of Dallas (FHLB Dallas) awarded a $19,267 Affordable Housing Program (AHP) grant to Habitat for Humanity Victoria (HFHV) to provide ...
Read more...Santa Clarita builder to complete Oak Haven homes in Fillmore
Santa Clarita-based home-building company Williams Homes plan to begin construction on the first phase of previously uncompleted houses in Fillmore by late spring.
Read more...Home starts on upswing
New housing construction, which has been flat in Decatur the past two years, is showing some signs of life.
Read more...D.R. Horton, Inc., America’s Builder, Reports Fiscal 2012 Second Quarter Results and Declares Quarterly Dividend
D.R. Horton, Inc. , America’s Builder, today reported that net income for its second fiscal quarter ended March 31, 2012 increased 46% to $40.6 million, or $0.13 per diluted share, from $27.8 million, or $0.09 per diluted share in the same quarter of fiscal 2011.
Read more...OmniAmerican Bancorp, Inc. Announces First Quarter 2012 Earnings
FORT WORTH, Texas -- OmniAmerican Bancorp, Inc. (the "Company"), the holding company for OmniAmerican Bank, today announced financial results for the quarter ended March 31, 2012.
Read more...