Capital Lending

We are planning on having our home built, but we will also have to sell the home we are currently in?

bbydol221 asked:


So when we get a building loan, we understand that we don’t have to start paying back that loan until construction is finished, correct? So, can we just have the house almost finished, then delay it a little until our house sells, then finish building? This way, we won’t have 2 mortgages.

Tags: Building Loan, Mortgages

This entry was posted on Wednesday, November 25th, 2009 at 11:41 am and is filed under Renting Real Estate. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

One Response to “We are planning on having our home built, but we will also have to sell the home we are currently in?”

1. Roll Off Syracuse says:

   November 25, 2009 at 6:24 pm

   You misunderstand the concept here. You don’t start paying back principal on that loan until you convert it to a full standard mortgage. However, you DO pay interest on the amounts borrowed until the construction loan is converted. Expect a monthly interest bill according the amounts borrowed as construction progresses. If you halt construction at 90%, you will pay monthly interest on that 90% cost until the house is completed.