You mean the lender's risk, if I default on the loan, of not having a finished

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Apr 20, 2021
1:25:17am

BleedCougarBlue2 Truly Addicted User

home to resell vs having a finished home in a standard 30-yr mortgage?

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BleedCougarBlue2

Previous username: Twister
Bio page: BleedCougarBlue2
Joined: Sep 5, 2017
Last login: Apr 24, 2024
Total posts: 26,012 (1,893 FO)

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Messages

Author

Time

Can anyone explain to me why a home "construction loan" has a higher interest

BleedCougarBlue2

4/20/21 12:35am

Length of the loan. Get a lot more out of you over 30 yrs than 6 mos to yr for construction.

Soupie

4/20/21 12:43am

Hmmm....makes sense. One person I asked said it's because there's no market for

BleedCougarBlue2

4/20/21 1:19am

Risk during construction.

mulletino

4/20/21 1:20am

You mean the lender's risk, if I default on the loan, of not having a finished

BleedCougarBlue2

4/20/21 1:25am

Yes

molodyets

4/20/21 1:44am

Ok, that makes sense, too. Thx for clarifying.

BleedCougarBlue2

4/20/21 2:30am

Because it’s more risky - the asset collateralizing the loan doesn’t exist yet.

molodyets

4/20/21 1:24am

On top of that, managing draws is more labor intensive for the lender.

Pimpin4Paradise

4/20/21 6:59am

Zions has a seamless Bridge/Construction Loan

SwanSong

4/20/21 1:44am

Jordan Credit Union has an option too if you are in Utah or Idaho.

Cougsanity

4/20/21 7:30am

I live out of UT but the lot to be built on is in Grantsville. Sufficient?

BleedCougarBlue2

4/20/21 1:06pm

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