I’m looking at 7 acres of land to buy and then to build a barn with apartment/or house. What options do I have, if any, to group the mortgage/loan together as one 30 yr mortgage? Would a construction loan have to be paid off in a few years?
Lender · Winlock, WA · Member since 2013 · 1k+ posts · 1k+ votes
5y
Construction loans come in 2 flavors.
1) A 1 year construction loan. This loan gives you 1 year to get the house built and you are then required to refinance the property at the 1 year mark.
2)A construction to perm loan. This loan has the 1 year construction portion of the loan built in, and then once you have the occupancy certificate, it rolls into the permanent portion of the loan for the remainder of the 29 years that you have left on the loan?