Residential Construction Financing

Building your dream home or doing renovations?

Looking for a new home that no one has lived in before and is just the way you want? Is the space in your current home no longer fitting your family’s changing needs?

Whether you are planning to build a new home, make an addition, major renovation, or finish the basement in your existing residence, construction financing can help make your dream home a reality.

What is Construction Financing?

Construction financing is a short-term arrangement made to finance any real estate-related projects. To get started, the home or landowner will take out the loan to cover all the related costs of the project. This helps the project get started before a more permanent source of funding becomes available. At the end of the project, many people chose to refinance construction loan into permanent mortgage or sell their projects to make profit.

For the lender, construction loans have more risk than regular loans, so the interest rates are generally higher. A typical construction loan will last from 8 to 24 months. During this time, only the interest payments are required. Home or landowner also requires having at least 25%-30% funds available in order to obtain financing for the project.

Call Loki Constructions Inc’s today and they will customize your loan based on your project and needs.