What is the current & rate for Construction loans now? When applying for a construction loans… while a project is underway can I move on to the next project?
Linden,
Typically you will be paying wall street journal prime+1% on construction loans during the construction phase. Your rate on your permanent loan depends on what type permanent financing you choose. It is possible to lock in your permanent rate during construction, but you will typically pay a 1% fee to get that rate. The only time that makes sense is when you are building a large home that will take 12-18 months to complete. To answer your second question you can work on other projects while construction is underway.
Also worth mentioning-- If you lock in early on in the process on a construction loan, most lenders will allow you a one time floatdown within 60 days of closing on the permanent loan, if rates have improved.
Also, you can start on another project, but I have yet to find a construction lender for investment properties. You can’t build two primary residences at one time, so that would probably prevent you from having two construction projects going at once. You can do one as a second home, but it has to be geographically a reasonable distance from your primary home.
Is it possible then intead of doing another rehab just to get another home for rentals?
yes, that’s possible for sure