Build your perfect home with Mann Mortgage’s customized Construction Loans!
Construction loans make building Your Dream Home surprisingly easy and affordable.
What are construction home loans?
Not sure where to get started? That's okay too, we're happy to meet you where you're at and direct you to the right place or person.
The MannMade construction loan process.
Construction loans are specifically designed to cover the costs of building or renovating a property. They differ from traditional mortgages in that they disburse funds in stages as the project progresses, rather than providing a lump sum upfront.
- These loans typically consist of two phases. The first is the “construction phase,” during which you receive funds to pay for building expenses. The second is the “permanent financing phase,” where the loan transitions into a more conventional mortgage or a specific long-term financing solution.
Construction loan interest rates may vary but are generally higher than those of traditional mortgages. The rates can be fixed or variable, depending on the lender and the terms of the loan.
Lenders assess your project’s loan-to-value (LTV) ratio, which compares the loan amount to the property’s appraised value. A lower LTV ratio may result in more favorable loan terms and lower interest rates.
Securing a construction loan typically requires a well-detailed construction plan, a reliable contractor, good credit history, and proof of your ability to repay the loan. Our Polson Office can guide you through these requirements and assist you in preparing a solid application.
Applying for a home has
never been easier
Our quick and secure process takes less than 10 minutes to apply.
Learn more about
construction loans
Yes, construction loans can be used for various projects, including building a new home, renovating an existing property, constructing a commercial building, or even major landscaping projects. However, the specific terms and requirements may vary depending on the type of project.
Construction loan disbursements are typically divided into predetermined stages. As each stage of the project is completed and verified, the lender releases funds to cover the associated costs. This ensures that the funds are used for their intended purpose and reduces the risk for both the borrower and the lender.
A construction-to-permanent loan combines the two phases of a construction loan into a single loan product. It covers both the construction phase and the permanent financing phase, simplifying the process. Standalone construction loans, on the other hand, require you to secure separate financing for the permanent phase after the construction is complete.
To increase your chances of approval, it’s essential to have a well-thought-out construction plan, a reputable contractor, and a solid credit history. Demonstrating your ability to manage the project and repay the loan is crucial. Our Polson Office can assist you in preparing a strong loan application.
The repayment timeframe for a construction loan varies but is typically shorter than that of traditional mortgages. It may range from six months to a few years, depending on the lender and the project’s complexity. Once the construction is complete, the loan transitions to a permanent financing solution with a longer repayment period.
“I was always in the loop on my loan process. I loved the one-time close construction loan. It saved me thousands to be able to lock in the interest rate.”
Josue Gabriel Lopez
Let's get you home.
Borrow up to 97% of a home’s value with as little as 5% down. Our local loan experts will help guide you.
