There are a few situations that might lead you to choose a home equity construction loan. Maybe you have lived in your home for 30 years and want to add a garage, or maybe you’ve bought a new second home for cash and want to completely renovate the interior. Even if you are tearing down the whole structure entirely or building on undeveloped land, you can use your equity in the property as collateral for a construction mortgage.
What are Home Equity Construction Loans?
Depending on who you ask, a home equity construction loan may have different meanings.
Usually, when someone borrows money from a lender like The Federal Savings Bank to build a new home, they use that new home as the collateral for the loan (like a conventional mortgage). But “home equity construction loan” is a term that also includes renovation loans, which are a good fit if you have lived in your current home for years and have paid off enough of your mortgage to refinance, taking “cash out” of your home to fund a remodel or new addition.
Using home equity for construction loans is an excellent fit for those customers who are not looking to compromise on the vision for their perfect home. Construction mortgages are often the best option to give you the power and flexibility that you need to build your ideal home, especially in areas with low or reduced housing supply.
Home Equity Construction Loans at The Federal Savings Bank
If you’re looking to build, even in the not-so-near future, it’s worth consulting with a loan officer about what your path to a new home might look like. The Federal Savings Bank offers exciting new specialty loan programs for those looking to build, including construction loans for veterans and those who do not have a Social Security Number but do have an Individual Taxpayer Identification Number (ITIN).
Call us at 877-788-3520 for assistance in evaluating your options. One of our construction loan specialists can help you get a no-commitment loan estimate, or a pre-approval if you’re still shopping for the right location. Whatever your needs are, allow our personalized services to help you build the home you need with a program that fits your financial needs.
Subject to credit approval. Terms and conditions may apply. Subject to VA eligibility requirements. Property insurance is required on all loans secured by property.