Construction Financing Loans
Construction Loans & Construction Financing in Orlando, FL
Build Your Dream Home with Bluestar Mortgage Construction Financing
Bluestar Mortgage, based in Orlando, FL, offers a wide range of construction financing options to help you bring your vision to life. Whether you’re building from scratch, renovating a property, or acting as your own contractor, our experienced construction loan brokers can guide you every step of the way. Call us at 321-400-5545 to speak with a construction loan expert today.
What is a Construction Loan?
A construction loan is a short-term financing option designed to cover the costs associated with building a new home or major renovations. Unlike traditional mortgages, construction loans disburse funds in stages as the work progresses, ensuring you only pay interest on the money as it is released. Once the project is complete, the loan typically transitions into a permanent mortgage, simplifying the financing process.
Types of Construction Financing Loans
- Construction-Only Loans: Short-term loans that cover the construction phase, usually lasting 6-12 months. After the build is complete, a separate mortgage is required to pay off the construction loan, potentially involving a second set of closing costs.
- Construction-to-Permanent Loans: These loans convert to a standard mortgage once your project is complete, eliminating the need for separate closing costs. You make interest-only payments during construction, then transition to regular mortgage payments.
- Renovation Loans: Perfect for homeowners looking to buy a fixer-upper or renovate an existing property. These loans cover both the purchase price and renovation costs, including options like FHA 203(k), Fannie Mae HomeStyle, and Freddie Mac CHOICE Renovation loans.
- Owner-Builder Loans: For those who want to act as their own general contractor, these loans require the borrower to have significant construction management experience to qualify.
- End Loans: Once your construction is complete, an end loan covers the remaining balance, converting the short-term construction financing into a traditional mortgage.
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Benefits of Construction Financing Loans
- Flexible Fund Disbursement: Pay interest only on the funds you draw during construction.
- Customizable Loan Structures: Choose from construction-only, construction-to-permanent, or renovation loans.
- Cost Savings: Reduce overall costs with a single closing for construction-to-permanent loans.
- Local Expertise: Work with experienced brokers who understand the Florida market.
Frequently Asked Questions About Construction Loans
- What are the typical qualification requirements for construction loans? Lenders typically require a down payment of 20% or more, a credit score of 620-700+, and a detailed construction plan with cost estimates.
- Can I use my construction loan for fixtures and finishes? Funds are usually disbursed as work is completed, so additional upgrades may require separate financing if they exceed your original loan amount.
- How long do construction loans last? Construction loans typically have terms of 6 to 24 months, depending on the project’s size and complexity.
Connect with a Bluestar Mortgage Construction Loan Expert Today
Ready to start building your dream home? Contact Bluestar Mortgage in Orlando today at 321-400-5545 to speak with a knowledgeable construction loan broker. We’ll guide you through the entire financing process, from application to final approval. With the right construction loan, your dream home is within reach.
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