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Home / Real Estate Information / Home Buyer Tips / MA New Construction Mortgage Programs Introduction

08.25.14 Home Buyer Tips, Mortgage Information

MA New Construction Mortgage Programs Introduction

If you are evaluating building a new construction rather than purchasing an older home, it is helpful to understand the mortgage programs on the market. Financing new construction is much different than that of an older one. The conditions, interest rates, and processing will differ. Below are a few different MA new construction mortgage programs.

Construction Mortgages

Construction mortgages are short-term solutions designed to make funds available during the construction process. There is usually a schedule for when money is given and in specific amounts. Particular goals must be accomplished for release of funds to the builder. The expenses, interest charges, and other conditions will vary by lender. Construction mortgages are considered risky, thus conditions are often more intricate than other home mortgages. Upon conclusion of the construction period, a new mortgage must take over.

Convertible Mortgages

Construction to permanent mortgages involve a single closing. While the home is being built, interest-only charges are often required. Once the home is over, it turns into a normal loan with usual mortgage payments. Interest rates are typically determined when construction starts, but the rate lock for the permanent part of the mortgage might have an expiration. If your home is delayed, then the interest rate may change for the permanent mortgage.

Builder Financing for New Construction

This is the best alternative for a buyer because no additional mortgage is needed by the buyer. Buyers are usually required to give a significant deposit and to pay for upgrades out-of-pocket. Buyers must close on a mortgage before taking possession.

MA New Construction Mortgage Programs

Mortgage programs available will be based on who owns the lot or the builder does. Buyer-owned lots typically need a construction mortgage of some type. Builder financing is generally offered within builder-controlled subdivisions. Programs may also range by mortgage company as some have unusual alternatives. Contact a lending specialist to understand all of the different MA new construction mortgage programs and associated expenses prior to making a decision.

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Chris Graves

I grew up in Massachusetts, spent the majority of my young adult life in Boston, and own a home in Windham NH. I have owned properties in MA and NH. I specialize in mortgage lending in Massachusetts and New Hampshire and my company does have the ability to lend in other states. I graduated from the University of Massachusetts in Amherst Massachusetts in 2002. I have a Bachelor’s in Science. In addition to managing a team of loan officers my personal loan production is always in the top of the entire of company. I have personally been in the mortgage business for over 13 years. I pride myself with taking my clients from application to close in the smoothest and quickest way possible, while keeping them well informed during the entire process. I originate my own loans from start to finish and work hand in hand with my loan processors & underwriters to make sure I am updated to the minute with all of my files. I stay up to date with lending guidelines and speak with underwriters on a daily basis to ensure I am aware of all of the lending guidelines in place.

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Direct/Mobile: 978-376-5389
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Bedford, NH, 03110
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Topics

  • Local Information (61)
  • Misc Topics (14)
  • Mortgage Information (118)
  • News (22)
  • Real Estate Information (176)
    • Featured Properties (2)
    • Home Buyer Tips (134)
    • Home Maintenance & Repair (12)
    • Home Seller Tips (40)
    • Market Trends (24)

Disclosure

Company NMLS 1788.
Licensed by the New Hampshire Banking Department #13092-MB.
Licensed in Massachusetts.
Licensed in Maine.
Licensed in Florida.
Lender and Broker License #MC-1788.
http://www.nmlsconsumeraccess.org
Click Here for Our Privacy Policy

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