What’s the difference between a construction loan and a conventional mortgage?

A construction loan is used to construct a home or complete a important remodel and/or addition,
It is usually a line of credit skilful by the bank.
The borrower submits bills to the bank for payment. Payment is issued directly to the servicer
and a lien waiver is collected as verification that the contractor has been paid.
During the process, the bank monitors progress to a make sure the project stays on budget
and the borrower has enough funds to complete the home.The normal term for a construction loan is six to twelve months.
The borrower makes monthly interest payments for the term of the loan.

A conventional mortgage is a type of mortgage that meets the criteria of Fannie Mae and Freddie Mac.
It is not insured or guaranteed by any government agency. The normal term for a conventional mortgage is 15to30 years
and rate can be fixed,adjustable, or fixed for a period of time then converting to adjustable.
Funds from a conventional loan are used to purchase a home, refinance an existing mortgage (or mortgages), or

to payoff a construction loan 
Loan Sanction For Construction Of House, Building, Residential,
Apartment, Villa & 8.65% Lowest Interest Rate with Instant Approval Nationalized Banks
Apply 9964563600
GET MORE INFORMATION
  www.bkhataloans.com