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Get Some Information About Montana Construction Loans

Get Some Information About Montana Construction Loans

Building a home from the ground can be really exciting. You get to have everything the way that you want it. You will get your say on everything, and pick out everything that you want. But, building your own home can be expensive. Montana construction loans can help you pay for building your new home.

Before you can get a construction loan, you need to make sure that the land is in your name, and that you own it, without any liens or other issues on it. This kind of loan cannot help you buy the land. You must already own it.

Once you have purchased your land, and you are ready to start building on it. It\'s time for you to start looking at Montana construction loans. One option when it comes to these loans is to get one that is called a construction to permanent loan. This kind of loan transforms when you are done doing construction. It becomes a traditional mortgage at that point. They are also known as one time close loans, since you only have to close once, when you are getting it set up before you start your construction.

The construction loan rates Montana are required standard rates. However, in certain cases, they can be waived. To find out if you can qualify for those special circumstances, you need to talk to your loan company and see what their requirements are. There are also required contingency reserves that go with these loans. For ground up buildings or rehabs that are non-structural, that is 5%. For renovations, it is 10%.

While construction loans can help you build your dream house, there are some things that you can\'t do with them. One of them is that you can\'t buy your land. You also cannot buy a co-op or condo with them. They also cannot be used for spec homes, or commercial homes.

If you want to build your own home, one of these loans makes it possible for you to do so. Check into lenders in your area, and see who offers a loan with the best terms for you.