Before
you sell yourself short, talk to a mortgage company. Many lenders are more than
happy to lend you money for a lucrative project, because it means profitable
business for them too. Construction loans are the backbone of many mortgage
company portfolios, and if you own a vacant lot that has market value, lenders
will normally lend you money based on the collateral of the vacant lot. You get
cash to build a new house, and after you sell the completed project you can pay
back the loan and pocket the profits.
Other construction loans allow you to borrow
money from the builder's own sources, in the same way that you might borrow
money from an auto dealer to pay for the car you buy from them. Construction
companies with their own mortgage sources may charge you higher interest rates,
however, than conventional lenders.
Shop around for construction loans. More often
than not, deciding on a builder and the best source of funds will take longer
than it actually takes to build the house, but it is time well spent. A few
interest rate points can make a difference of thousands, or hundreds of
thousands of dollars. Talk to lots of lenders and built
For
more read at www.kenyan-real-estate.com
No comments:
Post a Comment