What Is Infill Construction Financing?
Breaking ground on a new construction project is a much different experience than purchasing a pre-existing property. Similarly, the type of financing required for a new build is not the same as what’s required for a pre-existing property. When you’re building an infill project, you need a loan that will match your needs and provide continuing funding as construction progresses. Rather than a standard mortgage or building loan, infill construction financing is a loan designed specifically for individuals or businesses undertaking infill construction projects.
How Does Infill Construction Financing Work?
In contrast to a typical loan which provides a lump sum payment to the borrower up front, an infill construction loan is designed to provide continuous funding over the course of a construction project. With an infill mortgage, the borrower is able to access funds at multiple points during the construction process. Typically, lenders will require inspections to be carried out at certain times during the construction process before the next portion of the loan is made available.
Am I Eligible for Infill Construction Financing?
Eligibility for infill construction will vary depending on the lender, but typically lenders who provide these types of loans will have an approval process that goes beyond the scope of a typical mortgage. For example, before providing funding, a lender may require a detailed construction budget, along with architectural plans for the new construction. This is in addition to verifying the borrower’s income, assets, and liabilities.
At First Foundation, our job is to work for you to find the best lender for your needs, and to help make your loan application as strong as possible. We work with the top lenders in the country so we can provide you with the best interest rates and terms for any loan or mortgage.
Tips from First Foundation
Not sure which type of loan is best suited for your construction project? Want to compare lenders to find the best deal on infill construction financing? We’re here to help. Our job is not to talk you into buying a financial product you don’t want – our job is to help you find the absolute best type of financing for your individual needs. You don’t have to negotiate with us to get a better rate; we offer you the best possible rate up front, every time – guaranteed.
Want more information about infill construction loans? Talk to one of our mortgage brokers today.