Want to build your own home or have a contractor that you're ready to hire? A construction loan from Wasatch Peaks is just what you need. It's a great way to finance your short-term needs for your long-term mortgage. Chances are, you've probably seen a home being built with the help of Wasatch Peaks.
Check out our current construction loan rates.
Here at Wasatch Peaks, your mortgage and construction loan are split using a two-step loan. First, you’ll utilize a construction loan throughout the building process of your home. During this time, you’ll make interest-only payments each month. Then, once the home is complete, you’ll re-qualify for long-term financing through a mortgage loan. This is done as a refinance, using the mortgage financing to pay off the construction loan.
These loans are particularly helpful for those who:
Our mortgage specialists can help you throughout the process. This includes the exploring options like the loan rate and length of the construction term and mortgage.
We cover up to 80% of the estimated appraisal value. There is also a 20% down payment required.
Yes, a construction loan can cover land costs along with the labor and materials for the home. The first draw from the loan can pay for the lot.
Yes, borrowers are required to make interest only payments during the time that their home is being built. This is typically paid as a monthly payment.
The approval process for a construction loan is different than that of a mortgage. Due to the risks associated with construction, lenders may require a larger down payment and have a higher interest rate compared to a mortgage loan.
Though similar to a mortgage loan, there are a few extra requirements necessary to get a construction loan.
In order to get a construction loan, you’ll need: