Construction Loan in NJ

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Looking for a loan to finance the construction of an owner occupied home. I have access to a decent size lot so I figured I would try to build since I can't find anything on the market that I love. My mortgage rep said the Construction loan wouldn't provide payment until after the work is done. They will provide upfront costs but thats it. Anyone know if there are loans that will give you the money upfront so you can pay the builder as the project comes along?

@Claudia Fernandez What your mortgage rep told you does not sound correct. You will need to find a bank or lender that does construction loans. Generally, construction loans will require 20% of the total costs of the project as a down payment, and the construction loan will only be for 12-18months. This should be long enough to complete the project, and refinance the house into a traditional 30yr mortgage. My bank allows me to use previously owned land as all or part of my downpayment.

Once you have a construction loan in place, you and your builder will request loan disburments based on the amount of work completed (generally around 5-7 payments total), and the bank will send out an inspector to check the amount of work matchs the amount of money to be paid out.

If I understand you question about the money, the answer is no.  No bank or lender will give you all the money upfront.  They want to make sure that you are building a house and not just taking their money.