You will need a construction loan to pay for the materials and labor, and you can use it to buy the land as well unless you are paying cash for your project. Construction loans are a little more complicated than traditional home mortgages since you are borrowing cash short-term for a building that will not yet occur. A construction loan is actually a line-of-credit, like credit cards, however with the lender managing when money is lent and released to the specialist.
Both both you and your specialist should be authorized when it comes to loan. The financial institution desires to understand that it is possible to manage the same day installment loans in maine mortgage with sufficient cash left over to finish the home, and that the specialist gets the strength that is financial skills to obtain the household constructed on some time on spending plan.