The United States economy relies on a healthy housing market. Recently, this market has seen a steady recovery from a real low period four years ago. Although the housing market has recently slowed down from its height, experts feel that it is basically strong. As a result, a large number of people are still anxious to build new housing instead of purchasing existing homes.
Getting financed for a construction project often requires more work than simply getting a mortgage for an existing home. Lenders assume more risk when they make construction loans versus standard mortgages. Borrowers also assume some risk that is not present with other loans. Before making the decision to build a new home, borrowers need to understand the construction loan process.