| Building your own home can be the most exhilarating | | | | interest rate will be converted into a conventional |
| and accomplished feeling but it can also be a big pain in | | | | mortgage program. Usually it is turned into a fixed-rate |
| the neck. Ongoing payment negotiations with your | | | | loan where the borrower pays the principal and |
| contractors, additional materials, and other unexpected | | | | interest rates at a fixed amount for the entire lifespan |
| costs can result to delays because of inadequate | | | | of the mortgage. |
| funds. The various stages of constructing a house is | | | | Payment options |
| very dynamic and it requires dynamic resources. You | | | | Like with fixed-rate mortgage loans, the terms could |
| can be relieved of this dilemma by simply obtaining a | | | | vary from short to long-term. The payment of |
| construction mortgage loan. In the state of Florida, | | | | amortization can vary from weekly, bi-weekly, monthly, |
| there are varied options to choose from. | | | | to bi-monthly. Aside from schedule of payments, other |
| How it works | | | | options include a tiered mortgage scheme where |
| Construction mortgage loans are perfect for building a | | | | different payment options, terms, amortization |
| residential dwelling and to help out the | | | | schedules, and rates are all under one mortgage. You |
| soon-to-be-homeowners in the various stages of | | | | can also pay off your mortgage quickly with |
| homebuilding by securing funds. Approval of the loan in | | | | pre-payment options that allow you to increase the |
| the same way that lenders approve of a mortgage | | | | payments of your original balance each year. A Match |
| (but without the existing collateral but eventually the | | | | Miss option is another alternative where you can |
| completed home will become the collateral) will allow | | | | match one or more payments and then miss a later |
| the start construction. During this period, payment | | | | payment schedule for each matched payment within |
| terms will usually be on an interest only basis until the | | | | the term. |
| completion of the home. Upon completion, only the | | | | |