Pennsylvania Construction Loan

Why is the Pennsylvania construction loan called a story loan? Well, there are reasons for it. Read further to learn about it.

No, it is not similar, as lenders demand to know the story behind the planned construction. Since construction loans in Pennsylvania are story loans, you cannot expect them to be standardized like conventional loans. Do you have to make regular payments under the Pennsylvania construction loan? Well, you are in for some good news. Construction loans in Pennsylvania require interest only payments.

Remember that you have to sit with the contractor and the lender and establish a draw schedule based on the stages of construction. Check with your lenders on how much they are willing to lend. Do you already own the land? Then, consider it as equity on the Pennsylvania construction mortgage. Do construction loans in Pennsylvania pave way for the rate lock agreement? Yes, you could purchase a rate-lock agreement but ensure that you allow for construction delays.

So, you have a PA construction loan and want to convert it into permanent loan? Then, you have what is called as construction-to-permanent loan. Here, the lender finances the construction of your house and by the time you occupy the house, the loan is converted from construction to a conventional mortgage. The main benefit of this loan is that there is only one application and one closing. You also have a float down option that would help you in taking advantage of the declining interest rates.

Do You Seek a Pennsylvania Land Loan?

Our best mortgage brokers provide several convenient programs if you seek a land loan in Pennsylvania. Are you interested in the balloon option? Balloon option permits 2-5 years to begin construction. Note that a fixed rate product is amortized over 30 years to keep the payment low. What about down payment for the Pennsylvania land loan? These land loans require 25% down payment. Remember that the lot size should confirm to the general area and should be residential in nature.

You could obtain the Pennsylvania land loan for:

• Land acquisition
• Agriculture land
• Parking lots
• Improvement of vacant lot
• Special uses land
• Land for industrial uses
• Land for commercial uses

Apply for a Pennsylvania Land Loan Today