These can cost thousands before you even break ground.
Buying land and building a home is an exciting path to getting exactly what you want, but the financing side is a bit of a different beast than a standard mortgage. 1. The Loan Types
You typically only pay interest on the amount that has been "drawn" so far, not the full loan amount. 3. Requirements: The "Paperwork" Heavy Lift
A short-term loan (usually 12 months) to cover the build. Once the house is done, you have to pay it off in full or get a separate mortgage to "take out" the construction loan. 2. The "Draw" Process