By David G. Wiederstein, Bloomberg Businessweek / February 16, 2019 / 8:24 amWritten by David G .
WiedersmithBloomberg.com / February 15, 201911:10 amPaying for construction loans?
What to do if you’re in need of a loan to build your dream home?
And what to do when your lender is asking for more than you’re ready to pay.
The best way to find out, according to experts, is to talk to a construction company.
And to find a construction loan in your area, look no further than construction finance.
As the construction industry continues to evolve, so too have the types of loans that lenders can offer.
Some are loans made by an outside lender.
Some involve a real estate agent.
Others are made through an online lender.
But all of these are subject to regulation by the Federal Reserve, the Treasury Department and others.
The process varies by state, city and even county.
That’s because the federal government has yet to develop regulations for all loan types.
“When you hear about a construction contract, it’s almost always the most expensive,” said Mark S. Smith, a former mortgage banker and principal at CIM Group LLC, an online financial services company.
The terms and conditions on a construction bond, for instance, may vary from one state to another, Smith said.
The federal government requires lenders to hold down interest rates from 3 percent to 2.75 percent and to charge fees of 1 percent to 3 percent on all construction loans.
The federal government also requires that all construction finance be secured by a mortgage.
But many lenders, including some with large construction operations, offer both the first and second tier of construction finance, said James L. Miller, a professor of finance at Columbia Business School.
The first tier includes the basic construction finance: A mortgage with the highest monthly payment, plus a $100,000 down payment.
The second tier includes refinancing and other options that may help pay off the loan.
For some borrowers, however, the first tier offers more options.
It’s also more accessible.
For example, borrowers in states with a high rate of home foreclosure, such as Florida and Alabama, may find it easier to access financing through construction finance than by traditional means, said Steven F. Hiltzik, a principal at Hiltzak Investment Management.
But it’s also easier to get financing through a construction financing business if you live in New York, he said.
For these borrowers, a mortgage from a realtor or mortgage broker might be easier to negotiate than financing from a construction lender, but there’s a trade-off, Hiltik said.
If you live on the East Coast, you might find it much easier to finance construction finance through a realty broker, Hltzik said.
For other areas, like California and New Jersey, the real estate agents or realtor could be more costly than a construction finance business.
But not every construction company offers all the options that a realtors or broker offers.
In fact, there are only a few companies that have the expertise and know-how to help borrowers get financing for their home projects, according, David G, a chief investment officer at PNC Financial Services Group Inc., a private mortgage company.
PNC’s services include the loan process, appraisal, appraisal appraisal fees, and the loan payoff.
It also has a credit line, a credit guarantee, a guaranty, and a credit monitoring program.
The company’s online mortgage and loan calculator, for example, allows borrowers to enter details of their home, including a projected price and a down payment and a construction history.
In addition, the site includes details on financing terms and fees.
It offers information about mortgage rates, interest rates, and closing costs, including the amount of a downpayment and the amount a borrower can expect to pay in interest and fees over a 10-year term.
The calculator also includes details of the financing, including interest rate, downpayment, closing costs and any guaranty provisions, said Julie S. Schaffer, a spokeswoman for PNC.
She added that it does not provide a list of options for borrowers to apply for financing.
The site also offers a list to get more details on a loan, such on interest rates and financing options.
However, borrowers may have difficulty navigating the options.
For instance, the company’s site is designed for a borrower in New Jersey and offers a loan amount of $500,000.
But the calculator doesn’t offer that option, according.
The site’s website says it will ask for a list from the bank to calculate the amount, but does not offer that list, Schaffer said.
The website also provides no contact information for the company.
The PNC website includes links to other websites that may be helpful, but can also lead to the company not offering the information it’s offering.
For instance, borrowers can use the company website to check loan information on