Financial packages

These financial packages are usually based on variable rate loans which allow for the funds to be dispersed on a "draw schedule" basis, according to the stages of construction and the needs of the buyer, contractor and/or the lender. The consumer can also lock in a certain rate on the new home construction loans during the building process, but rate locks are only effective for 30-60 days. If the individual has locked in a loan rate for a new home construction loan and they see that rates decrease during construction, then they will be relieved if the original agreement includes a float-down feature that allows a reduction in the rates, even if this can only be done once. Float-down features may require the consumer to select higher rate agreements, but they are also a safeguard, especially if the rate lock is going to affect the building process.