Northlawn Financial, Inc.

 

Lot Loans

This is a loan used to purchase a lot of land. This type of mortgage is often taken by the person who intends to some day build a home, but is only ready to buy the land (or lot) for now. This may allow the loan holder to purchase the lot up to five years before actually building.

Construction Loans

A construction loan is an interim loan that is used to pay for the building of a home as it is constructed. The lender will make payments to your builder as work on your home progresses. This is generally a short-term loan, but sometimes when the home is completed, the lender will convert the loan to a traditional mortgage. If the lender is not willing to convert the loan, you will either need to pay the loan in full or refinance the loan with another lender.