{"id":172942,"date":"2019-10-16T16:16:06","date_gmt":"2019-10-16T16:16:06","guid":{"rendered":"http:\/\/www.georgianewsdesk.com\/news\/story\/172942\/can-construction-loans-interest-rate-hinder-the-growth-of-businesses.html"},"modified":"2019-10-16T16:16:06","modified_gmt":"2019-10-16T16:16:06","slug":"can-construction-loans-interest-rate-hinder-the-growth-of-businesses","status":"publish","type":"post","link":"http:\/\/www.honolulunewsnow.com\/news\/story\/172942\/can-construction-loans-interest-rate-hinder-the-growth-of-businesses.html","title":{"rendered":"Can construction loans interest rate hinder the growth of businesses?"},"content":{"rendered":"

The U.S. construction industry was strongly hit by the recession. However, the industry is steadily returning with more than 650,000 employers and over 6 million employees. However, one of the major challenges faced by businesses in the industry is access to funding. In addition to finding answers to questions like “<\/span>Can I be my own registered agent<\/span><\/a>?” construction loans interest rate and other such factors have seemingly hindered several entrepreneurs from expanding.<\/span><\/p>\n

A construction loan is a bank-issued short-term financing specifically created for the purpose of financing a new home or other real estate project.<\/span><\/p>\n

Things to know about construction loans<\/strong><\/p>\n

High interest rate: <\/span>Construction loans tend to come with high-interest rates due to the risk involved.<\/span><\/p>\n

Big Down Payment: <\/span>Construction loans generally require a large down payment of between 20 and 25% of the cost of construction and mortgage.<\/span><\/p>\n

Thorough application process: <\/span>Applying for a construction loan can be time-consuming and stressful as it requires providing the details of the project, including like the total amount of funding required, details about the builder, a detailed project timeline, the floor plans or construction drawings, the cost of materials, and the cost of labor.<\/span><\/p>\n

Types of construction loans<\/strong><\/p>\n

There are several types of construction loans as follows:<\/span><\/p>\n

Construction Mortgage Loans:<\/span> This is a loan granted to finance the purchase of land, or construction of a home. These loans are usually structured so that the lender pays a percentage of the completion costs and the borrower, the builder or developer, pays the rest.<\/span><\/p>\n

Construction-to-Permanent Loans:<\/span> Also known as the CPloan, construction-to-permanent loans are another financing option for the construction of a new home. Such loans offer some extra convenience to borrowers with the combination of two types of loans in a single process.<\/span><\/p>\n

Commercial Construction Loans:<\/span> These loans are for bigger projects such as multi-family home or apartment building, high-rise, multi-unit retail center, or commercial office building.
<\/span><\/p>\n

Media Contact<\/span>
Company Name:<\/strong> Funding Box Company<\/a>
Contact Person:<\/strong> Viola D. Hayes
Email:<\/strong> Send Email<\/a>
Address:<\/strong>4450 Elmwood Avenue
City:<\/strong> Philadelphia
State:<\/strong> PA
Country:<\/strong> United States
Website:<\/strong> fdbox.com<\/a><\/p>\n

\"\"<\/p>\n","protected":false},"excerpt":{"rendered":"

The U.S. construction industry was strongly hit by the recession. However, the industry is steadily returning with more than 650,000 employers and over 6 million employees. However, one of the<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[1],"tags":[],"_links":{"self":[{"href":"http:\/\/www.honolulunewsnow.com\/news\/wp-json\/wp\/v2\/posts\/172942"}],"collection":[{"href":"http:\/\/www.honolulunewsnow.com\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/www.honolulunewsnow.com\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/www.honolulunewsnow.com\/news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"http:\/\/www.honolulunewsnow.com\/news\/wp-json\/wp\/v2\/comments?post=172942"}],"version-history":[{"count":0,"href":"http:\/\/www.honolulunewsnow.com\/news\/wp-json\/wp\/v2\/posts\/172942\/revisions"}],"wp:attachment":[{"href":"http:\/\/www.honolulunewsnow.com\/news\/wp-json\/wp\/v2\/media?parent=172942"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/www.honolulunewsnow.com\/news\/wp-json\/wp\/v2\/categories?post=172942"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/www.honolulunewsnow.com\/news\/wp-json\/wp\/v2\/tags?post=172942"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}