Get Dream Home Financing with Top Construction Loan Experts
Financial Considerations and Costs
Construction loans typically come with variable interest rates, which might be slightly higher than traditional mortgage rates due to the increased risks involved. However, many lenders offer interest-only payments during the construction phase, which can ease financial burdens until your home is complete.
It's crucial to budget for additional costs such as closing fees, inspection fees, and contingency reserves. According to the National Association of Home Builders, the average cost of building a new home in the U.S. is around $296,6521, but this can vary significantly based on location, materials, and design choices.