Construction Loan With No Money Down?
The process of obtaining a mortgage is rather simple: first, you look for a home that meets your needs, then you obtain a loan from a mortgage lender, then you purchase the home, and finally, you make regular payments on your mortgage loan, which include interest.

Construction loans function differently. The essence of the loan is the same, but the aim of receiving it is different. Let’s explore what construction loans are and how they work.

What is Construction Loan?
The costs of building a house are typically covered by a construction loan that is obtained by the homeowner. A mortgage loan is given to pay for the purchase of a property that already exists, while a construction loan is given to pay for the building of a property along with everything that goes along with it. Such as a storage shed, a patio, the fundamental framework of a building, etc.

A construction loan is a short-term loan that can be used for the purchase of land or the construction of one’s own home. It is dependent on the type of loan that you are given as to whether or not you will be able to use these funds for the renovation of an existing property. During the construction phase of the loan, you are only required to make payments on the interest portion of the loan or no payments at all, depending on the total amount of the loan that is still outstanding.

Read more on how to get a construction loan with no money down.