Construction permanent loan is for those young businessmen who wants to start a new construction business but due to unavailability of large amount finds it impossible to start it. Construction permanent loan fulfills these young business men dreams and they can construct a structure easily without any financial pressure. A person who applies for construction permanent loan pays a interest during construction and pays rest of money after completion .This is a good deal because a person has enough time to pay loan back so a person can save money and plan a better future for himself and can complete his construction without any delay.
Construction Phase
A person who applies who applies construction permanent loans enters into a business deal. There is proper procedure of this loan repayment. Consumer’s contractors become his partner till the building process is completed and the bank pays contractor during construction phase. You don’t have to pay any money to contractor after completion as bank has already paid him. So it is a good deal and a business man who is starting any new construction project should consider this option.
Mortgage Phase
After the construction phase that is the first phase is completed and all the finances of contactor is cleared the person moves to next phase as per as construction permanent loan lending companies that is mortgage phase. On this phase a construction permanent loan is converted to a mortgage and this mortgage applies to construction site that is constructed on this loan.
Security
During construction phase a person only pays interest to bank on fixed rate and can save rest of money which he might require in building process. This loan lending companies gave a sense of security to its costumers. A costumer can change the loan rate as per as bank rules and regulations. These authorities given to builders by banks are very beneficial and it gives a sense of security to them because you never know any mishap can happen with you.
Finding Best
So if a person had made up his mind to apply for construction permanent loan should first research it and finds a best deal for his company. It is not a difficult task to find information about these loans due to availability of internets and televisions. A person can find a list of construction permanent loan lending companies and can choose the best one in internet.
So it a good deal to apply for this loan because it is two step process. Building process and mortgage process. By applying this loan a person can construct any building easily without spending huge amount on it but by paying small monthly installments to bank.
Drawbacks
There are also many drawbacks and disadvantages of this loan. So before applying this loan a person should be well aware of drawbacks of permanent construction loans and should discuss every point with these loan lending companies officials and other experts before making an agreement with these companies in order to avoid any future loss. So apply for this loan and live your dream.
