| Picture it. Your first home. Your dream home. The | | | | calculated and given to the lender so that the workers |
| home that you, yourself, are going to construct. | | | | can be paid. |
| However, you find that you are in a bit of a financial | | | | Before applying for a construction loan, you must be |
| bind. There is no need to fret; the funding for your new | | | | approved for a residential mortgage in order for |
| home is available through various new home | | | | construction to begin. Stated income construction loans |
| construction lenders. | | | | provide funding to help you build your new home, and |
| Although construction loans can be issued to both | | | | do not require verification of your income, whether you |
| owners and builders, some lenders are a bit reluctant | | | | are having trouble verifying it, or you simply choose not |
| about lending to inexperienced builders. The loan | | | | to disclose that information to the lender. In turn |
| sometimes includes the cost of the land on which the | | | | however, the interest rates, and subsequently, the |
| new home is built. In short, construction loans set up a | | | | down payment, of stated income construction loans |
| line of credit that pays the suppliers and | | | | may be a bit higher than that of any other type of |
| subcontractors while the home is being built, making | | | | new home construction loans because there is more |
| them happy. | | | | risk involved when the income is not verified. The |
| A new home construction loan is set up in stages, | | | | advantage of this type of construction loan, besides |
| which are either monthly or in accordance with the | | | | the lack of need for verification, is that these loans |
| building process. During the latter stages, the amount of | | | | tend to be approved at a much faster rate. |
| funds used during the specific period of time is | | | | |