The gang over at Green Mortgage Team sent us their latest blog which contains useful advice for anyone looking to do a something other than a conventional mortgage. ~Ed.
A construction mortgage is set up very different than a conventional mortgage. Lenders finance construction on a “Cost to Complete” basis. In this type of financing, the mortgage lender withholds enough funds from the approved mortgage loan amount to complete the construction in the event there is a foreclosure or default on the loan. As the borrower progresses throughout the different stages of construction, the mortgage lender releases more money in “draws” to the borrower. Click for full article.