Construction Loans

Finding the perfect construction loan lender is one of the most important aspects of building a new home. Aside from great rates and costs, your first consideration should be construction lending experience. Even more than a standard mortgage loan, a construction loan is complicated. North Star Home Lending loan officers have significant experience providing construction loans to consumers.

As never before, many individuals and families are choosing to build a new home. Our construction loan programs feature numerous down payment, point and interest rate options. Since the home building process is incremental, North Star Home Lending customers can pay interest only on the amounts advanced as building progresses. Additionally, when construction is complete, many options allow for your mortgage to automatically convert to a permanent loan, without a second closing.

We will help you choose the right construction loan product for your specific needs. Many construction loans nowadays are a construction to permanent loan that may or may not allow you to lock-in today's low interest rates until the home is completed. If you choose a loan that does not allow you to lock in upfront, the interest rate may end up higher along with your monthly payment. Understanding what your options are becomes most important.

Construction loans can be used for many purposes including:

• Building a new home
• Substantial additions on an existing home
• Substantial repairs and renovations to an existing home
• Tear-down and reconstruction

Your North Star Home Lending loan officer will spend the necessary amount of time with you explaining every aspect of construction lending. We will discuss with you all of the pertinent issues including:

• Property acquisition
• Builder requirements
• Property inspections
• Construction draws
• End loan modifications

Many local builders and developers look to North Star Home Lending to provide their clients with the necessary education and guidance in securing a construction loan. Our expertise often makes the transaction easier and more efficient.

Given recent changes, maximum mortgage amounts now vary by state. The maximum conforming mortgage currently in the State of Michigan is $417,000. Your North Star Home Lending loan officer can advise you of the conforming loan limit for any state in which you may have an interest.

For further information, please contact your North Star Home Lending professional.