Construction Loan FAQs
What is a construction loan?
A construction loan is a loan used to finance the building of a new home or other real estate project. It covers the costs of construction before the property is completed and can be converted into a mortgage once the construction is finished.
Who is eligible for a construction loan?
Eligibility typically includes individuals with a stable income, good credit history, and ownership of the land where the construction will take place. Specific eligibility criteria can vary by lender.
What documents are required to apply for a construction loan?
Required documents usually include proof of identity, proof of income, detailed construction plans, a construction contract, cost estimates, and proof of land ownership.
How is the loan amount determined for a construction loan?
The loan amount is typically determined based on the estimated cost of the construction project, the value of the land, and the borrower’s financial profile, including their income and creditworthiness.
Can I apply for both a construction loan and a renovation loan at the same time?
Yes, you can apply for both types of loans simultaneously if you have separate projects that require funding.
How long does it take to get approval for a construction or renovation loan?
Approval times can vary, but it typically takes about 4 to 6 weeks ( about 1 and a half months), depending on the completeness of the application and the lender’s processing time.
What are the processing fees for construction loans?
Processing fees generally include MMCB fees 20,000 MMK per pax, lawyer fees 50,000 MMK, and valuation report charges
60,000 MMK.
Can I refinance my construction loan?
Yes, you can refinance your construction loan.
Do I need to hire a licensed contractor to qualify for a construction or renovation loan?
Yes, hiring a licensed contractor is usually a requirement to ensure that the construction or renovation project meets quality and safety standards.
What is the maximum loan amount available for construction or renovation loans?
The maximum loan amount depends on the lender’s policies, the borrower’s financial profile, and the value of the construction project
Renovation Loan FAQs
What is a renovation loan?
A renovation loan is a loan used to finance the improvement, repair, or upgrade of an existing property. It covers costs associated with renovating and refurbishing the property.
Who is eligible for a renovation loan?
Eligibility typically includes property owners with a stable income, good credit history, and sufficient equity in the property being renovated. Specific eligibility criteria can vary by lender.
What documents are required to apply for a renovation loan?
Required documents usually include proof of identity, proof of income, renovation plans, cost estimates, and proof of property ownership.
How is the loan amount determined for a renovation loan?
The loan amount is typically determined based on the estimated cost of the renovation project, the value of the property, and the borrower’s financial profile, including their income and creditworthiness.
Can I apply for both a construction loan and a renovation loan at the same time?
Yes, you can apply for both types of loans simultaneously if you have separate projects that require funding. Each application will be assessed independently based on its own merits and requirements.
How long does it take to get approval for a renovation loan?
Approval times can vary, but it typically takes about 1 to 4 weeks, depending on the completeness of the application and the lender’s processing time.
What are the processing fees for renovation loans?
Processing fees generally include MMCB fees 12,000 MMK per pax, lawyer fees 40,000 MMK, and valuation report charges 40,000 MMK
Can I refinance my renovation loan?
No, you cannot refinance your renovation loan.
Do I need to hire a licensed contractor to qualify for a renovation loan?
Yes, hiring a licensed contractor is usually a requirement to ensure that the renovation project meets quality and safety standards.
What is the maximum loan amount available for renovation loans?
The maximum loan amount depends on the lender’s policies, the borrower’s financial profile, and the value of the renovation project. It is best to consult with your lender for specific limits.