New Construction Loans in Arkansas

There are more steps involved in the construction of a new property than most people realize. You not only have to worry about finding the right land but also have to find ways to optimize your costs. Even before the construction starts, you will have already incurred some hefty costs. For example, hiring contractors, sourcing building supplies and materials, and acquiring building permits all cause a dent in your budget.

This is where new construction loans come in. Construction loans allow you to get the funding you need to support all of the aforementioned expenses and more. New construction loans are typically given out for the short term, so you also don’t have to worry about the long-term liabilities other loans carry.

A huge benefit of getting a construction loan is that the payment terms are relatively more flexible. The lender will be able to provide the funds in phases. As one phase of your construction process gets completed, you’ll be able to borrow more funds for the next one. Lenders release funds in sync with your project phases, making it easier for you to manage them.