Have you bought a used house or have been living in a property that you would like to renovate or extend? The construction loan is for you! This type of loan is specifically designed to help you modernize your existing property or adapt it to your changed needs.
Important feature of a construction loan
An important feature of a construction loan is that the bank does not disburse it to you in one lump sum, but in installments, and when you get the individual installments depends on the degree of completion of the construction. When you are ready for the construction phase, the next installment of the loan will be disbursed after a site visit. You can apply for a construction loan to finance a variety of activities related to the renovation and modernization of your used property, such as floor construction, or even the replacement of insulation, windows, and heating.
Construction loan is the need for self-employment
Own resources are calculated from the value of the site and the budget; you need to raise 40% of the sum of the two. However, this amount can be reduced by using additional collateral, so even if you encumber a property with a mortgage, the cumulative value is calculated and 40% of the total value is calculated and the maximum loan amount can be calculated accordingly.
There are several types of state aid available for a construction loan , so you have to meet much stricter conditions for a market-based loan if you want to raise it, but that is not impossible, and if you successfully overcome the obstacles and have a positive credit rating you are best off when renovating or building.
If you have decided that you want to use a building loan to modernize your house, make sure that not only one financial institution deals with it! Compare the available offers through our site and choose the one that suits you best! Do you have a question or a comment? Do you want advice? Contact us at our contact details!