Experienced lenders can help you compare construction loans and home equity credit lines, so you can evaluate the benefits and risks to ensure a wise decision. Homeowners often want to make many improvements to their home. It is after all where they live and spend most of their time.
HELOC vs Construction vs Finance Home Remodeling, Rehab, Fix and Flip & More
Homeowners also want to renovate their home to add value to it before they put it on the market and a construction loan, and a home equity credit line are two popular finance vehicles. It is very critical to find banks, lenders or brokers that extend niche products that help consumers best finance home construction. Banks and mortgage lenders continue to expand new programs in 2026 for home construction financing and HELOC loans in all 50 states. The Refiguide will help you compare the the construction loan vs home equity loan and HELOC so that you can make an informed decision and maximize your financing opportunities.
There are two major types of home construction loan programs that can accomplish your house renovation dreams:
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Construction or Home Rehab/Improvement Loan
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Home Equity Line of Credit (HELOC)
What are they and what are the advantages and disadvantages of each?
1. Home Construction Loan
A home construction loan can be obtained for new construction or renovation to an existing home. Most home construction loans are temporary financing options designed for the construction of a new house.
These construction loans come in various forms, such as construction-to-permanent and construction-only loans. Depending on the type of construction loan you secure, you might have the option to transition it into a traditional mortgage once your house is completed. Below are the common characteristics of construction loans:
- The loan amount is usually not equal to what the construction cost is. It is usually lower by 2-8%.
- The construction process must be planned out on a strict schedule. You as the borrower, the construction loan lender and contractor will work on several ‘draws’, which are structured payments or installments that are released as the work is being done.
- Your loan repayment is done over 3-5 years in most cases, and the interest rate can be fixed or variable. If you get a fixed rate, you are charged a flat interest rate from the time of the first draw.
- The home and land are collateral for the construction loan.
If you are going to get a construction loan to do your renovations, many experts advise that you get a construction loan from a larger bank or financial institution. This will allow you to get a better interest rate. Experts also advise that you go for a fixed interest rate so that you know exactly what you will be paying and for how long. Ask about new FHA home construction loans.
What Are Home Construction Loan Rates?
To be more precise, construction loan interest rates typically stay approximately one percentage point higher than regular mortgage rates. Presently, you might come across construction loan rates ranging from 5% to 7%. The rationale behind this pricing is that construction loans lack the security of a completed home, rendering them riskier compared to conventional mortgages.
2. Home Equity Line of Credit for Building a House
A construction or home improvement loan is a loan that is separate from the mortgage on your property. On the other hand a home equity loan is a loan that is given against your equity in your home. Here are the major factors of this type of loan:
- The HELOC line is granted according to the amount of equity you have in your home.
- You can usually borrow up to 80-90% of your home equity. For example, if you have a mortgage of $400,000 and the home is now worth $480,000, you should be able to get a home equity loan of $70,000 from many lenders.
- A home equity loan has a fixed interest rate and the repayment is over the life of the home loan, which could be 15 or 30 years for most people.
- This type of loan is known as a second-mortgage, which means that if you fail to pay, the lender can foreclose and work with the primary lien holder. Or the lender can sell the home. Also, the construction loan lender can wait until the bankruptcy has concluded and sell the home.
Pros and Cons: Construction Loans vs HELOC for Building Projects
| Factor | Construction Loan | HELOC (Home Equity Line of Credit) |
|---|---|---|
| PURPOSE & IDEAL USE CASES | ||
| Primary Purpose | PRO:Purpose-built for construction Specifically designed for ground-up builds, major additions, or extensive renovations requiring construction expertise and phased funding. Best for: New home construction, room additions, second-story additions, detached ADUs, major structural renovations ($100,000+)
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PRO:Flexible multi-purpose financing Revolving credit line usable for any purpose—renovations, emergencies, debt consolidation, or construction as needed. Best for: Phased renovations, kitchen/bath remodels, interior updates, landscaping, smaller projects ($50,000-150,000)
|
| INTEREST RATES & PAYMENTS | ||
| Interest Rates | CON:Higher rates during construction Construction-only loans: 7.5-10.0% during build phase Construction-to-permanent: Converts to 6.5-7.0% after completion Rates 1-3% higher than standard mortgages during construction due to increased lender risk
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PRO:Lower initial rates 7.25-7.63% APR variable rate (2026 average) Competitive with standard home equity products Rate tied to prime rate—can rise or fall over time. Currently lower than construction loan rates.
|
| Payment Structure | PRO:Interest-only during construction Pay only interest on drawn amounts during 6-18 month build period Converts to principal + interest after completion (construction-to-permanent) |
PRO:Interest-only on drawn amounts Pay interest only on borrowed funds during 5-10 year draw period Flexible payments—can pay down and re-borrow as needed |
| LOAN AMOUNTS & FUND ACCESS | ||
| Maximum Borrowing | PRO:Higher loan amounts available Up to 95% of completed project value (some programs) Typical: 80-90% loan-to-cost ratio Can finance land + construction costs. Example: $500,000 project may get $400,000-450,000 loan
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CON:Limited by existing equity Maximum 80-85% combined loan-to-value (CLTV) Must have equity before starting Example: $400,000 home with $300,000 mortgage = only $20,000-40,000 HELOC available (insufficient for major construction)
|
| Fund Disbursement | PRO:Controlled draw schedule Lender disburses funds in stages based on construction milestones Inspections verify completion before each draw Protects borrower—ensures contractor completes work before receiving payment
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PRO:Immediate, flexible access Draw funds anytime during construction via check, transfer, or card No lender approval required for each withdrawal Complete control over timing and amounts—ideal for managing contractor payments
|
| DOWN PAYMENT & EQUITY REQUIREMENTS | ||
| Down Payment | CON:Substantial down payment required Typically 20-25% of total project cost Construction-to-permanent may require only 3-20% depending on loan type Example: $300,000 project requires $60,000-75,000 down payment upfront
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PRO:No down payment needed Uses existing home equity—no additional cash required Simply tap equity you already have Major advantage—can start project without substantial cash reserves
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| Equity Requirements | PRO:Can build without existing equity Works for new construction, vacant land, or properties lacking equity Based on future completed value, not current equity |
CON:Requires 20%+ existing equity Must have substantial equity before qualifying Not viable for new construction or properties with minimal equity Recently purchased homes or underwater properties won’t qualify
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| QUALIFICATION REQUIREMENTS & APPROVAL PROCESS | ||
| Credit Score | CON:Higher credit requirements 680-700 minimum for most programs 720+ preferred for best rates and terms Construction loans viewed as higher risk—stricter underwriting standards
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PRO:More flexible credit standards 680-700 minimum typical Some lenders accept 660-680 with compensating factors Slightly easier qualification than construction loans
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| Documentation | CON:Extensive documentation required • Detailed construction plans and blueprints • Licensed contractor information • Itemized cost breakdown • Construction timeline • Builder’s risk insurance • Permits and zoning approvals Substantial upfront planning required before application
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PRO:Standard mortgage documentation • Tax returns (2 years) • Pay stubs and W-2s • Bank statements • Home appraisal No construction-specific documents required Much simpler approval process—no construction plans needed
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| Approval Timeline | CON:Lengthy approval process 45-90 days typical due to construction plan reviews Multiple inspections during construction Lender involvement throughout build |
PRO:Faster approval 14-45 days typical approval timeline Standard underwriting process Start project sooner |
| FLEXIBILITY & PROJECT CONTROL | ||
| Contractor Choice | CON:Licensed contractor required Must use licensed, insured general contractor Lender may require contractor approval DIY construction typically not allowed Less flexibility—cannot act as owner-builder in most cases
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PRO:Complete contractor flexibility Choose any contractor—licensed or unlicensed Can act as owner-builder and DIY No lender approval required Maximum flexibility—use friends, family, or do-it-yourself projects
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| Project Changes | CON:Change orders require approval Major plan modifications need lender review May require additional documentation Can delay project timeline |
PRO:Unlimited flexibility Change plans anytime without lender approval Adjust scope as project progresses Total project control |
| Unused Funds | CON:Limited borrowing adjustments Loan amount set at closing based on plans Over-borrowing wastes interest payments Under-borrowing requires additional financing |
PRO:Borrow only what you need Draw funds as project requires Pay interest only on borrowed amounts Return unused funds without penalty Perfect for projects with uncertain costs—maximum financial efficiency
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| COSTS & FEES | ||
| Closing Costs | CON:Higher closing costs 3-5% of loan amount typical Includes appraisal, inspection fees, title work Example: $300,000 construction loan = $9,000-15,000 closing costs
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PRO:Lower or waived closing costs Often $500-2,000 total Many lenders waive fees with minimum draw requirements Significant cost savings—especially for smaller projects
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| Ongoing Fees | CON:Inspection fees during construction $200-500 per inspection (typically 3-5 inspections) Builder’s risk insurance required during construction Additional $1,000-2,000 in construction-phase costs |
PRO:Minimal ongoing fees Annual fee: $0-100 typical No inspection fees or special insurance required Lower total cost for smaller renovations |
| LONG-TERM CONSIDERATIONS | ||
| Loan Structure After Completion | PRO:Converts to permanent mortgage Construction-to-permanent loans become standard 30-year mortgage Single closing—avoid refinancing costs Rate locks available during construction Streamlined—one loan from start to finish
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CON:Remains variable-rate second mortgage Two monthly payments (primary mortgage + HELOC) Variable rate—payments can increase After 5-10 year draw period, enters repayment phase Payment shock risk when draw period ends and principal payments begin
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| Refinancing Options | PRO:Standard mortgage after completion Can refinance like any other mortgage Access to conventional refinancing programs Potentially lower rates after construction |
CON:Complicates primary mortgage refinancing HELOC lender must subordinate (agree to stay in second position) Some lenders won’t subordinate, blocking refinance Additional complexity and fees |
| Tax Deductibility | PRO:Mortgage interest deduction Interest deductible when building/improving primary residence Standard mortgage interest rules apply Up to $750,000 debt limit ($375,000 single) |
PRO:Deductible for home improvements Interest deductible when used to substantially improve home Must track usage—only improvement portion deductible Same $750,000/$375,000 combined debt limits Both qualify for tax deductions when used for home construction/improvement
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| RISKS & CONSIDERATIONS | ||
| Construction Risk | PRO:Lender oversight protects borrower Inspections ensure quality before fund release Lender verifies contractor completion Built-in protection against contractor fraud Third-party verification reduces risk of contractor abandonment or poor workmanship
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CON:Full borrower risk No lender oversight or inspections Borrower responsible for verifying work quality Risk of paying contractor before work completion Higher risk of contractor issues—requires diligent project management
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| Budget Overruns | CON:Limited flexibility for cost increases Loan amount fixed at closing Overruns require additional financing or out-of-pocket payment Difficult to adjust mid-project |
PRO:Built-in contingency available Can draw additional funds if within credit limit Flexibility for unexpected costs No re-application required Better cushion for construction surprises and budget overruns
|
| Foreclosure Risk | CON:Primary lien position Construction loan becomes first mortgage Default results in foreclosure Lose home if cannot complete construction or make payments |
CON:Second lien position Default on either mortgage or HELOC risks foreclosure Two separate monthly payments to manage Double default risk Both put your home at risk—maintain payment discipline on construction debt
|
Decision Guide: Construction Loan vs HELOC
✓ Choose Construction Loan When:
- Building new home from ground up or on vacant land
- Major structural project requiring licensed contractor ($150,000+)
- Need financing exceeding existing equity (80%+ of project value)
- Want lender oversight and draw inspections for contractor accountability
- Prefer single loan converting to permanent mortgage after completion
- Don’t have 20%+ equity in existing home
- Building investment property or second home
✓ Choose HELOC When:
- Renovating existing home with substantial equity (20%+)
- Smaller to mid-size projects ($50,000-150,000)
- Want flexibility to act as owner-builder or use unlicensed contractors
- Need quick approval and funding (14-45 days vs 45-90 days)
- Prefer complete control over fund disbursement and project changes
- Want to preserve low existing mortgage rate (avoid refinancing)
- Project costs uncertain—want to borrow only what’s needed
- Don’t want to pay $9,000-15,000 construction loan closing costs
Consider Hybrid Approach:
- Use HELOC for initial phases (demolition, foundation)
- Switch to construction loan if project scope exceeds HELOC capacity
- Or complete smaller projects with HELOC, save construction loan for major additions
What are Today’s HELOC vs Construction Loan Rates?
According to CBS, as of January 22, 2025, HELOC interest rates average around 8.27% for qualified borrowers, reflecting a decline from previous months. In most cases the interest rates for a home equity line of credit are variable with an interest only payment option.
Construction loan rates vary based on the lender and loan type. For example, USU Credit Union offers a fixed construction loan rate of 6.24% with an Annual Percentage Rate (APR) as low as 6.24% for a 30-year term.
Similarly, Oregon State Credit Union provides construction loan rates with flexible terms of 30, 20, and 15 years. It’s important to note that these rates are subject to change and may vary based on individual qualifications and market conditions.
Talk to mortgage lenders and banks that have experience with HELOCs and home construction loans.
The major types are the home equity loan and the home equity line of credit, also called a HELOC). The equity loan option provides you with one lump sum of equity to fund your home improvements, while the HELOC provides you with a line of credit that you can tap as you need it for your home improvements. Whether you are leaning towards a conventional construction loan, HELOC or home equity loan to build new house, you need to know which programs you actually qualify for with your current borrowing credentials. It is very important when considering the construction loan vs line of credit that you understand the closing costs, interest rates and loan amount limits before choosing an option.
Which Loan Type is Better for Home Construction (Home Improvement Loan vs. HELOC)
It depends upon your circumstances. Getting a construction or home improvement loan allows you to do home improvements but it is on a set schedule and the money is disbursed by the lender as certain milestones are met.
Also, the construction loan is of a limited duration, with a loan period of three to five years being most common. This will increase the amount of your monthly payments.
But on the up side, your interest rate is usually fixed and you will result in paying less interest over time given the short duration of the loan.
For doing home improvements, there is little doubt that a home equity loan or home equity line of credit is the most popular. A loan based upon your home’s equity provides you with a low interest rate, but it will be a bit higher than your first mortgage interest rate.
If you choose to get a HELOC construction line, you will pay interest only payments for the first five or 10 years of the loan, and then the interest rate will jump as you start to make principle payments as well. A home equity loan has a fixed rate.
Many borrowers select a HELOC for construction, as the approval process ca be quicker and easier than a construction loan.
Whether you get a HELOC, an equity loan or a cash back refinance, you will pay the loan over many years, which will reduce your monthly payments. However, you will need to pay much more in interest than a construction or home improvement loan. Check the current HELOC rates and home equity loan credit from national finance companies.
Congress passed a tax reform bill that eliminates the ability for homeowners to get a tax deduction for a home equity loan in 2025, so it’s important that you consider the pros and cons of a construction loan versus a home equity loan before signing documents.
How to Qualify for a Construction Loan
When you get a home loan to build your home, the lender does not have a home as collateral during construction. That is why qualifying for a construction loan or credit line can be more difficult. The construction lender needs to see details about the size of the home, the materials that were used and the contractors that are doing the work. Your general contractor should be able to provide all of the information needed to satisfy the lender.
The lender needs also to know that you will be able to afford the monthly loan payments as your home is built. If the lender thinks that you are not able to pay your current mortgage or rent while the home is being built, you won’t get the construction loan.
You also need to have plenty of savings to get your home construction loan. Construction finance companies know that unexpected costs occur during the building process. There will nearly always be a cost overrun of some type that you don’t know about in advance. Construction loan lenders do not want you to empty your savings account to pay for cost overruns. Cost overruns also can occur during building if the borrower changes their mind about something once the home is being constructed.
Next, do your research on your builder. You should find a builder who has experience building the home you want as far as price, style and size. You should examine the credentials of the builder. Get references from past clients. See if there have been any complaints lodged with the builder.
The construction loan lender will also review the quality of the builder, their credit and finances, to ensure that they can follow through with construction.
Also know that the lender will conduct regular inspections of the construction being done. During this stage of the process, the lender will pay your contractor in draws. Usually, an inspector or appraiser will show up on the job site to be sure that the construction plan is proceeding as expected.
Building your own home is what many people dream about. You get to choose exactly how the home is laid out and the amenities it will feature. But to get through the home building process, it is very important to have all of your finances in order so that you can get a competitive construction loan. Make sure you have done all of your due diligence so that you can get your dream home built on schedule with a home construction loan payment that you can afford.
The timing is great for borrowers seeking credit lines and loans for home construction. Rates are great and lending standards are easier than past years.
How to Qualify for a HELOC Construction Loan in 2026
When you take out a home equity line of credit to build your house, the mortgage lender uses your residence as collateral the second the HELOC closes escrow. That means that if you do not make your credit line payment, the bank has the right to begin the foreclose process, even if your construction is not completed. Granted the HELOC is in second position on title, so if you are paying your first mortgage on time, it becomes less likely the bank or lender will come after you.
However, legally they have every right to foreclose on your home if you are not making your HELOC payment as agreed.
The qualifying process for a HELOC is typically less strenuous than a construction loan, but in most instances you will need some equity to be approved for a home equity line of credit. The loan to value is determined by adding your existing first mortgage and the proposed credit line amount together and then dividing that sum total by the estimated value on your home.
Here is a major difference between the equity line of credit versus most construction loans and that is the HELOC lender will consider the present value before construction, and the construction lender will consider the estimated future value of the home after the construction is completed.
The credit score requirements on home equity lines will be similar to fixed second mortgage loans and conventional first mortgage programs. Most HELOC lenders will want 700 fico’s, but some niche 2nd mortgage lenders will accept credit scores between 620 and 680 if you have some equity and a low debt to income ratio. Subprime and hard-money lenders will be approve HELOCs for people in 500 to 620 score range, but you will need more available equity, (AKA lower CLTV) than traditional mortgage companies will allow. If you have credit issues in the past, consider a bad credit HELOC.
Best Home Construction Loans in 2026
Finding the perfect home for your tastes and needs can be a challenge. If you are tired of trying to find the ideal existing home, maybe it’s time to consider building your own! With a home construction loan in 2026, you can build your dream home! Check out the information below about construction loans that are available this year and beyond.
Construction-Only Loan
This type of construction loan is short-term, usually for a year. It is intended to cover only the construction of the home and nothing else. Note that many conventional lenders don’t offer construction-only loans. There are many variables, such as the contractor’s performance and adherence to the timeline, getting building approvals, and more. These are higher-risk construction loans that some lenders don’t want to take on.
You can still get a construction-only loan in 2026, but you should know they are harder to qualify for and the interest rates are higher. Also, if you get this type of loan, you will need to pay for additional loan fees and closing costs when you apply for a regular mortgage. What does the Consumer Finance Dept of the US Government think of construction financing this year?
Construction-To-Permanent Loan
This is a popular construction loan that your builder can apply for. This also is a one-time construction loan that pays for the construction costs. After the construction is done, it converts to a traditional 15 or 30-year mortgage.
While construction is going on, you will make interest-only payments. Construction-to-permanent loans tend to be pricier than a traditional mortgage, so ask several mortgage lenders for quotes to see who offers the best terms and rates.
House Renovation Loan
A renovation loan is also known as a FHA 203k loan. It can be used to renovate your home and they are backed by FHA construction loans. This allows you to buy and renovate the home while making a single payment to cover the costs of both. You also can get this type of renovation loan through Fannie Mae and Freddie Mac.
Another option for renovation is to do a cash-out refinance on your first mortgage or a home-improvement loan. This allows you to take out some equity, renovate the home, and add what you took out to your loan balance. with most home renovation loans, the homeowners are responsible for handling the budget, planning, and making payments. In contrast, when dealing with alternative financing methods, the construction loan lender takes on the task of assessing the builder, scrutinizing the budget, and supervising the draw schedule.
Owner-Builder Loan
Another type of construction loan in 2026 is the owner-builder loan. This is a loan that the builder takes out to build your home. These owner builder loans require the builder to show a lot of experience as well as education and licensing to prove they can finish the home on time and on budget.
Whichever home construction loan you get, remember that you will not ever touch the money yourself. They are paid to your builder, and they only receive funds for work that is done. If the project comes in under budget, you don’t get that money to spend on other things, but it will reduce the amount you borrow.
There are many construction loans available for a variety of situations in 2025, so talk to your mortgage lender today. You are close to having your dream home built, you just need to find a home construction loan.
Can you get a HELOC while under construction?
Yes, you can use a home equity line of credit during construction, and it can be a helpful way to manage unexpected expenses. For instance, you could fund the majority of the project with a construction loan and use a HELOC to cover any additional costs or new projects. A HELOC during construction can provide flexibility for ongoing expenses, but you may need a higher credit score and substantial equity in the property to qualify.
Here are some key factors to consider when using a HELOC construction loan:
- Eligibility: To qualify for a HELOC construction loan, you’ll need a good credit score, enough home equity, and an appraised home value that supports a favorable loan-to-value ratio.
- Collateral: Since a HELOC is a secured equity loan, your home serves as collateral. If you default on the loan, the lender has legal recourse to claim the property.
- Interest Rates: HELOCs come with variable interest rates, so it’s important to shop around for HELOC lenders offering the most competitive rates.
- Appraisals: Some lenders may provide HELOCs without requiring a appraisal, particularly if your home has recently been upgraded.
Additionally, you can use your home equity to purchase a new property. For example, a home equity loan or cash-out refinance can provide you with a lump sum of cash to use as a down payment on a new home.
Construction Loan vs Home Equity Loan
A construction loan is specifically designed to finance the building or major renovation of a home. It usually has a short-term duration, typically 12-18 months, and may require interest-only payments during construction. Once the home is completed, the loan often converts to a traditional mortgage.
In contrast, a home equity loan allows you to borrow against the equity you’ve built in your home. It’s a lump sum with fixed home equity loan rates, typically used for home improvements or other large expenses. Unlike a construction loan, it doesn’t require you to be building a new home. You can use an equity loan for home remodeling repairs or even debt consolidation.
Can You Use a HELOC for Construction Loans?
Yes, a HELOC can be used to finance construction costs, acting as a flexible source of funding. Many homeowners use HELOCs to cover material and labor expenses during home construction or renovation projects. Since HELOCs offer revolving credit, they allow for withdrawals as needed, making them an attractive option for managing construction costs. However, lenders may have restrictions, and your eligibility will depend on your home’s equity, creditworthiness, and loan-to-value ratio.
Can I Use Home Equity for a Construction Loan?
Yes, you can use home equity to finance construction by obtaining either a HELOC or a home equity loan. These loans allow homeowners to borrow against their existing property’s equity to fund new construction or major renovations. A home equity loan provides a lump sum, while a HELOC offers flexible, revolving credit. However, lenders will evaluate your credit score, income, and loan-to-value ratio before approving financing.
How to Finance Construction of a New Home with Home Equity?
To finance new home construction using home equity, you can take out a HELOC or a home equity loan on an existing property. A home equity loan provides a lump sum for construction, while a HELOC allows for flexible withdrawals as needed. If you don’t have enough equity, you might consider a construction-to-permanent loan, which transitions into a mortgage after the home is completed. Lender requirements vary, so strong credit and financial stability are crucial.
Can You Have a Construction Loan and a Home Equity Loan?
Yes, it is possible to have both a construction loan and a home equity loan, but it depends on your lender and financial situation. If you have significant equity in another property, you can use a home equity loan to help finance construction costs while also having a construction loan. However, lenders may have restrictions on multiple loans, and your debt-to-income ratio, credit score, and loan-to-value ratio will determine eligibility for both loans simultaneously.
Can you add home renovation costs to a conventional mortgage?
Is it wise to be using home equity for construction loan financing?
Yes, in most instances, using home equity to finance construction can be a good option, but it ultimately depends on your specific situation. You have to be able to afford your monthly payment and if you can leveraging your equity may be a wise financial investment that you can enjoy every day.
Home Improvement Loan vs Home Equity Loan
Can you get a home equity loan on new construction?
To qualify for a home equity loan on new construction, you typically need to have completed the build and obtained a certificate of occupancy. Lenders require equity, meaning the home’s appraised value must be higher than any existing loan balance. If the home is not yet complete, a construction loan or cash-out refinance may be better options for financing.
Can land be used as equity in a construction loan?
Yes, if you own land outright or have significant equity in it, lenders may allow you to use it as collateral for a construction loan. The land’s value is factored into the total loan amount, reducing the cash down payment required. Lenders typically require a property appraisal and clear title before approving the loan. Loan terms depend on credit, financials, and project details.
Bottom Line When Comparing Construction Loans to HELOCs
As reported by S&P Global Market Intelligence, in the initial quarter of 2025, the combined volume of construction loans, encompassing both commercial and non-commercial categories, reached a sum of $479.69 billion.
Most people who want to fund home improvements choose to tap their home equity with an interest only HELOC or home equity loan with a fixed rate. The facts that the interest rate is low and you can pay the loan over 10+ years means that it simply costs you less in monthly payments each month.
Of course, you are paying more interest than with a home construction loan. It often comes down to how much you can afford to pay each month, and how much interest you are comfortable paying over the life of your construction loan or HELOC.
Both of these home construction loan products can work for your house improvement needs. We suggest discussing your goals with construction loan lenders so can best determine which works better for you depending upon your current finances.
About RefiGuide
Bryan Dornan is a financial journalist and currently serves as Chief Editor of RefiGuide.org. Bryan has founded several mortgage and marketing companies and has worked as a loan officer and mortgage broker in the industry for nearly 30 years and has a wealth of experience in providing mortgage clients with the highest level of service in the industry. Bryan's continual focus is to educate homeowners how to leverage home equity while also promoting affordable home-ownership to consumers like you across the United States. He also writes for RealtyTimes, Patch, Buzzfeed, Medium and other national publications. Find him on Twitter, Muckrack, and Linkedin
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