Hmmm. So if a construction loan/jumbo loan is obtained then the home would be built and so forth. As for the financing of this type of loan, does anyone know if the interest rate is the same as any type of loan or are they slightly higher?
Registered: 05/12/04
Posts: 22
Loc: des moines ia usa
Typically constrtion loans carry a higher rate. They would be converted to a conventional at the end of the construction period. Some banks allow you to lock in that conv. rate. So your protected against not being able to afford the home you just had built just for you.
I am sure this varys for area to area depending on the risk in new constrution so check with your lender.
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