These are loans that are solely for the purpose of constructing the house and do not convert automatically to your permanent mortgage. They will typically be from six to twelve months in duration. Owner Builder Financial Services offers a wide variety of competitive permanent mortgage programs called "takeout" loans to pay off your interim construction loan when it comes due.

You might wonder why a person would choose to use a interim loan instead of a "roll over" loan. While we understand that nobody wants to pay for two appraisals, $300 each, and two escrows, depending upon the amount of the loan, about $1000, there are some benefits to choosing using an interim loan program. The reasons might be speed, easier qualifying, better long term loan rates.

Our interim loan amount is based on the appraised value not the actual cost. Many programs are based on 80% of appraisal or 85% of cost, which ever is less. This means that you would have to put in 20% of the costs. It will probably take less cash out of pocket using an interim loan program.