Construction Loans Made Simple

There are a lot of loans out there to consider. One such loan is called a construction loan. These types of loan are not like a traditional mortgage-style loan. They are short-term loans that range from a few months to a few years. As the name implies, construction loans are to cover the construction of your property. SFR Ventures, Inc. specialize in construction loans in the San Francisco Bay Area. Construction loan requirements for California do vary from lender to lender. In the San Francisco Bay Area, the time period is usually around six to twelve months.

One important factor that you need to consider is what type of house you plan to build. This first step is key to understanding and obtaining the right construction loan amount to cover the completion of your project. You’ll need to consider how you are going to repay the loan when it becomes due. You’ll also need to demonstrate your ability to repay the loan. You can use land or other real estate as equity to find out just how much your construction loan lender will approve for your project.

One of your challenges is going to be estimating your construction costs. This process can be overwhelming even for the seasoned investor. One key factor to help you determine what amount is right for the job is to hire a qualified and trustworthy contractor. He or she can walk you through the process and help you break down budget and construction costs for the entire project.

Although your credit will be considered, construction loans aren’t based on credit scored alone. For many construction loan lenders, collateral and demonstrating your ability to repay the loan are more important when you apply. Once you have been approved, the funds are paid throughout the construction of theproject. The funds are distributed based on an agreed timeframe.

SFR Ventures, Inc. is located and headquartered in Northern California, but we do lend throughout the state. If you feel that a construction loan is right for you or if you have any additional questions, call Beau Eckstein at 925-852-8261 or visit SFR Ventures, Inc. on the internet at http://reiloanpro.com.