New home construction loans

New home construction loans are used by borrowers when choosing to build a new house. With this type of lending program, financial agreements are designed differently than standardized agreements. A new home construction loan is designed for the unique needs of builders, whether the individual is a licensed contractor or buyer in the market for a newly designed house. New home construction loans allow interest-only payments during the building process with the amount coming due or rolled into a mortgage payment upon the building's completion. If the individual has arranged for the agreement to be construction-to-permanent financing, then there is only one application and one closing which will save a great deal of time. Completion of the agreement will be based upon the legal issue of a certificate of occupancy.