Utah Construction loans are fairly easy to get, we offer Utah Construction Loans with credit score starting as low as a 560 credit score and up to an 850 credit score. There are some common features to a construction loan. Construction loans typically require interest-only payments during construction and become due upon completion. Completion for homeowners means that the house has its certificate of occupancy.
Utah Construction loans are usually variable-rate loans priced at a spread to the prime rate or some other short-term Utah interest rate. You, the contractor and the Bank negotiate a draw schedule based on stages of construction, and interest is charged on the amount of money disbursed to date.
Another variable in a Utah construction loan is how much of the project cost the lender is willing to lend. If you already own the land, then at can be considered as equity on the Utah construction loan, we can offer Utah Construction loans from 80%Loan to Value up to as high as 95% Loan to Value depending on loan amount needed.
A Utah Construction Loan, unlike a mortgage, it can be closed under a few different programs. The first option being a 3 -5 year arm closed end Utah Construction Loan at 80% LTV that gives the flexibility to watch the market interest rates as well as gives the builder plenty of time to complete construction as to avoid any extension fees that most Utah Construction Loans come with.
Another option would be a standard Utah Construction Loan with 5-10% down on a 12 month Utah Construction Loan term that would be refinanced after construction is completed.
Call Daniel Paris (801) 604-4949 24/7 to start your Utah Construction Loan Today !