A Construction Loan is a much different loan than a regular mortgage. When you add an off-site structure into the mix it is beneficial to fully educate yourself as to what financing is needed and how it works.

• The interest rate for a construction loan is usually higher than a long term mortgage. It is a short term loan and you only pay interest on the money you have drawn.
• The construction loan is established with a construction budget with all of the construction costs precisely budgeted. Upon completion of a certain stage of construction (ie. Foundation) the bank with release the funds to pay that stage. It will help protect shortage of funds during the construction process.
• Upon completion of the project the construction loan is paid off with the long term mortgage.
• Very few construction loans will provide 100% financing, so be prepared to have cash for some upfront costs.
• Some construction loans will only provide a small down payment to the factory and the remaining amount upon delivery. Since Irontown builds custom homes and we are unable to resell them easily, we require payment to our financing terms. This is not a problem with the help of an interim financing company to handle the difference.

Irontown's Financing Terms

• Initial Draw - 25% of modular portion
• 4-Way Completion Draw - 25% of modular portion
• Paint Completion Draw - 25% of modular portion
• Final Inspection in the Factory Draw - 25% of modular portion

Give us a call for some of our preferred lenders.