HELOC vs Home Equity loan

[Charles Perkins]

I'm working on a short plat and will be building another house on the new lot. I'm in the process now of looking at financing options for the build. I prefer a HELOC to a loan. I'm interested in your thoughts.

[Dustin Tucker]

Hello Charles, are you building a house for yourself or to sell?

I would do a HELOC, because if you don't want to take the money out you don't have to pay the interest, on a home equity Loan, the full amount is going to be advanced when the loan funds, and you will pay finance charges on the whole amount.

We do investment loans on new construction, Typically we can do 60% of the land costs, and up to 100% of the vertical construction, not to exceed 85% of the Costs.

Thanks,

Dustin