Building a house is a landmark event in any person’s life. The decision to build a house comes after a long analysis of the sources of funds to facilitate the process. Luckily, there are a lot of lending companies that offer loans targeted at new home construction. New home construction loans and stated income construction loans are the two types of loans that are offered to people in the process of constructing a new home. Both types of loans offer funding for new home construction, but the difference lies in the way in which they can be obtained.

The first and very crucial step in obtaining a home construction loan is choosing a lender. New home construction loans are offered by all major national lenders and can also be obtained from regional banks or mortgage companies. The important point to note is that the lender must be kept informed of anything and everything that has been planned about the home construction. Typically, the interest for a new construction loan is paid over a period of 12 months, and then replaced by a mortgage, once the home’s construction has been completed.

New construction loans themselves are of two types. The first type is known as the all-in-one loan, in which the loan is automatically converted to a regular mortgage on completion of the construction of the home. The second type is the construction-only loan, which as the name suggests covers only the construction costs of the home. This type of loan is due as soon as the construction is done and must either be paid off or replaced by a mortgage. Lenders have very specific ways of paying for the construction of the home. The payment of funds is divided in to several “draws”. The home-owner must draw up a plan at each stage of the building process clearly stating how much funding was used at that particular stage of construction. For example, a draw can be done after the pouring of the foundation of the home, or maybe during the framing of the home. This drawn up plan is then sent to the lender, who examines it and allocates the funds to be paid.

The other type of home construction loan, called the stated income construction loan is a loan that does not require the verification of the home owner’s income. This type of loan is a boon and is best suited for self employed individuals. Anyone who cannot produce verification documents for their income, or chooses not to reveal their earnings can benefit from this kind of loan. The benefit of a stated income construction loan is that it is generally approved much faster than other kinds of loans. The downside to this type of loan is that the interest rates associated with it are much higher than other loans. Correspondingly, the down payments are also significantly higher. The procedure to apply for a stated income loan is quite simple and all it requires is an online application or a direct application at the office of the chosen lender.

If you are in the market to buy a home, you have likely had trouble deciding between a new home and a resale home. It is a buyers market right now which means that there are several great homes to choose from for every home buyer. There are many advantages in purchasing a new home and just as many advantages in purchasing a resale home. This article will explore some of the reasons why you might want to purchase a new home.

A huge reason why many home buyers have opted to purchase a new home in recent months is because of the available incentives home builders are offering. In most cases, because of the large incentives, home buyers can purchase a new home for less than a resale home. In addition, home builders make purchasing a home from them easier because they offer down payment assistance or trade-in programs. Home builders have the money and ability to effectively communicate their home specials to the public, resale homeowners offering large incentives cant always tell people about them.

Another factor appealing to many home buyers is that a new home is just that, new. Most of these homes are located in new communities around new commercial centers and near new parks. Many home buyers like knowing that theyll be the first person, or family, living in the home. They like the feel of a new home with new carpet, new tile and new appliances. Many of them choose to customize the home to their wants and needs and like the ability to do so.

Home building trends change over the years, in most cases these changes lead to greater efficiency and a better use of available space. Most new homes have energy efficient windows, appliances and building materials that decrease energy costs and use, one example is better insulation. In addition, home builders discover ways to better distribute space such as the recent trend towards 10 foot ceilings or the introduction of a Grand room which is a combination of a Kitchen and Living room and allows familys more time together.

Buying a home is an exciting experience and can be overwhelming. There are several advantages to buying a new home and just as many advantages to buying a resale home. Each home buyer has different needs and wants, be sure that you explore all of your needs and wants before deciding on a home. The most important thing is that you and your family are happy.