Simple tips to Know if Your house is Qualified So it loan method of, whilst it also provides comfort, it is far from instead of cons. Construction-to-long lasting loan lenders constantly charges higher fixed rates, particularly inside the design phase. That is because the lender considers such financing riskier because it is capital the new residential property, the construction, therefore the home loan toward accomplished domestic, and it can fill up so you can eighteen months one which just key out of and work out desire-only repayments so you’re able to dominating and notice costs on the mortgage. Your own bank elizabeth fixed interest for both levels otherwise beat the newest repaired rate of interest when your loan turns to help you a long-term real estate loan. You may have to generate a larger down payment, also usually at least 20% to locate which loan.