Home building loans

Each stage of construction requires a lump sum to be paid to the builder in order to fund the next stage. A home building loan is designed to pay for the house as it is being built. This is accomplished in stages, usually distinguished by a 'percentage of completion' number. It is required that the lender be able to pay lump sums based on the stage that has been completed. The builder must be able to prove that a stage has been completed before the provider will release funds for the next stage.