Chris Lamm: Redding Mortgage Lender, a Shasta County home mortgage loan lender, can offer home buyers the option to build their dream home! Because of its higher risk (due to a lack of collateral), not every lender offers this type of loan. But with Chris Lamm, Redding home construction loans are part of the lineup of loan products available to prospective owners and home builders.
Typically, home construction loans are set up with construction-to-permanent financing. In this scenario, the loan starts as a short-term construction loan, meaning it generally has a time frame of one year maximum. To qualify for this type of loan, borrowers will need to show the lender the construction plans, budget numbers, and construction timetables. Construction is then monitored by the lender to ensure that it’s proceeding on the expected time frame. Once construction is complete, contractors have been paid, and a certificate of occupancy has been issued, the loan is rolled over into a mortgage. In this way, the borrower only pays closing costs once. This is called a one-step loan.
Chris Lamm offers home construction loans on flexible rates. The loan interest runs on a variable rate (also called an adjustable rate) that changes with the prime rate. This can be a benefit in several ways. The mortgage can be set up with lower rates and payments at the beginning of the loan term, which gives the borrower more buying power. And if interest rates fall, it also gives the borrower the ability to take advantage of lower interest rates without needing to refinance.
With flexible rates and a long-term take out-loan, Chris Lamm: Redding Mortgage Lender can help you build your next home. A strategic partnership with the Redding Bank of Commerce makes this possible. Call for details on Redding home construction loans at 530-282-1166 to get started!