Building a home in Florida can be a complicated and expensive process. However, the professionals at Embrace Loans can help you streamline the process and make building more affordable using a Florida construction loan as your Florida mortgage.

A Florida construction loan is different from a traditional mortgage loan, and that’s why you need expert advice when setting up your loan. Construction loans are designed for people who are building a new primary home that they will live in, building a second or vacation home in Florida, making major renovations to an existing property, or building rental houses or income properties.

Simplify your loan

Building a home can involve several loans of different types and durations, including a loan to purchase property (if you don’t own it already), one to build the home, and another mortgage to pay for the home after it’s built. Of course, this process means you’ll pay closing costs and fees for each loan, and you may have to re-qualify at each stage of the process.

A popular option for construction loans is known as a “one-time-close,” “all-in-one,” “rollover,” or “construction-to-permanent” loan. Essentially, this wraps all of your loans into a single package, and you’ll only have one closing. That offers you a significant savings on closing costs and fees.

Our Florida construction loans have a number of options and benefits, including:

  • Interest and Contingency Reserve: The borrower pays interest only on the part of the construction loan that’s been paid out to the contractor. If you’re renting or paying another mortgage payment while building, an interest reserve will keep you from having to make another monthly payment during construction of your new home. Of course, if you prefer to start making your monthly payment, you can.
  • Rate Lock: A home may take up to a year to build, but a rate lock option can make sure you know what your mortgage interest rate will be before you start the building process.
  • Float-Down Options: Of course, being locked into a rate can be a problem if mortgage rates move down during construction. A float-down option allows you to re-lock your mortgage at the new lower rate.
  • Required Inspections:  Your contractor’s work must pass required inspections before funds can be released to the contractor. That means you’re protected against substandard work.

Talk to an expert

In addition to these options, Florida construction loans can be structured as fixed or adjustable rates, 15-or 30-year loans, or include other terms. That’s why it’s important to work with an experienced construction loan broker that knows your local market and can advise you on the type of Florida mortgage that will fit you best. To find out more about Florida construction loans, call 407-733-6425 or browse our blog.

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