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JD MORTGAGE® connects you with lenders who want to help you build a new home or renovate an existing property. We find the lenders that offer terms specially tailored to your goals.
Offered exclusively through Biglaw Investor, we make it incredibly simple to find the best loan for your construction financing needs.
I’m an associate at a firm in Houston and used JD Mortgage thanks to your advice! The experience was great—they were super fast and responsive.” —Mary Kate Raffetto Beck Redden LLP
For a JD Mortgage, I had good luck with IBERIABank. [They] made this process very smooth.” —Clint Cowan Lynn Pinker Hurst & Schwegmann
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Bordered by the mighty Mississippi River, the state of Mississippi is known for its humid climate and fertile lands that have historically attracted settlers. Despite these natural advantages, the state experienced a 0.4% population decline over the past decade, according to U.S. Census data.
That hasn’t stopped people clamoring to build their dream homes on any one of the 46,923 square miles in the state. Many individuals turn to construction loans to assist them in completing the project. When you’re obtaining a new construction loan in Mississippi, it’s crucial to compare the best construction loans available in the state. This way, you can see what loan rates each lender offers and find the ideal one for you.
Another popular reason for building new homes in Mississippi is a long-held belief, backed up by a study, that purchasing is cheaper than renting in the state. The analysis found that the average monthly rent in the state was $1,039 compared to monthly mortgage payments of $886. Of course, you’ll need to factor in the additional expenses associated with buying a home to make sure the choice is right for you.
There are four basic types of construction loans:
Construction-to-permanent loans are an excellent choice for first-time borrowers, as they allow you to build property equity more quickly and will enable you to convert your loan into a permanent mortgage once the construction is complete.
They typically have lower costs than conventional loans because they don’t require as many inspections or appraisals during construction.
The most significant benefit of this loan program is that it can help give homeowners equity faster than other loan types.
Suppose you sell your property within five years after closing on your construction-to-permanent loan. In that case, there’s no penalty for canceling the original contract or breaking it into smaller chunks (i.e., selling off parts of the house).
A construction-only loan is a short-term loan that provides financing for the building of a home. It does not include any funds for furniture, fixtures, or other items necessary for occupancy.
This loan only finances the construction cost. It does not fund other costs such as lot purchase, land clearing, or site preparation.
The interest rate will be higher than a standard mortgage, but you don’t have to worry about paying back any debt while working on the house.
Owner-builder construction loans are for homebuyers who plan to do some work themselves. This type of loan is ideal for you if you want to save on costs by doing the labor yourself or to retain a portion of your home’s equity to build additional equity as its value increases over time.
Owner-builder loans tend not to be short-term (one year or less), which means they’d last longer than other types of mortgage loans. That gives homeowners more flexibility in terms of what they can do with their repayment schedule—for example, making extra monthly payments so that they’re debt-free sooner rather than later!
A renovation loan is a type of home loan used to pay for improvements to a property. You can use this loan to pay for improvements that the homeowner will live in or rent out as an investment property. The purpose of these renovations determines the loan amount the homeowner can borrow.
For example, if you want to buy a home and renovate it before moving in, you could use renovation financing for this purpose since it’s an improvement you will use yourself.
BankFirst is a community bank located in Alabama and Mississippi that has a robust construction loan product. If you’re interested in working with someone local, and you find the terms appealing, they could be a good fit for you.
Recently we asked Bank First to provide us with the details on their construction loan. Here’s the overview:
When you’re ready to connect with a loan officer, use our form to quickly match with construction loan programs based on your specific circumstances.
If you’re interested in working with a credit union in Mississippi, we found a construction loan product at Mutual Credit Union with attractive terms, including up to 80% financing.
Here is the overview of the construction loan product provided by Mutual Credit Union according to the details they provided.
When you’re ready to connect with a loan officer, use our form to quickly match with construction loan programs based on your specific circumstances.
Wintrust Mortgage is one of the top 20 bank-owned retail mortgage originators in the country that originates in excess of $4 billion in loans annually in all 50 states.
Recently we asked Wintrust Mortgage to provide us with details on their construction loan and this is what they said:
When you’re ready to connect with a loan officer, use our form to quickly match with construction loan programs based on your specific circumstances.
There are plenty of construction loan lenders in Mississippi and PriorityOne is another that can help you build a home in the state.
The construction loan offered by PriorityOne seems typical of the market in Mississippi but may offer competitive rates, so it’s worth checking as part of your due diligence.
When you’re ready to connect with a loan officer, use our form to quickly match with construction loan programs based on your specific circumstances.
The following are some factors to consider when getting a construction loan in Mississippi:
Interest Rate
The interest rate is crucial when deciding on a construction loan. Looking at your credit score, home equity, and income before deciding on an interest rate for your construction loan is essential.
You also want to know if there will be any fees or penalties if you pay off your loan early and close it before the term ends.
Credit Score
A good credit score can help lower the interest rate on your construction loan, but bad credit may increase it or even prevent you from obtaining one altogether!
If you have poor credit, work with a lender who understands what they’re doing and won’t take advantage of people by charging higher rates than necessary just because they need help paying their bills each month (which could happen).
Home Equity/Equity Line of Credit (HELOC)
Before applying for any construction loan, check whether or not there is enough equity available in your home so lenders can finance 100% of what needs replacing right away. Then, you won’t have to worry about finding other sources later down the line (like lines from private investors).
Click on another state to find the best construction loan lenders in that state.
Joshua Holt is a licensed mortgage loan originator (NMLS #2306824) and founder of Biglaw Investor. His mortgage expertise lies in the areas of professional mortgage loans, particularly for lawyers, doctors and other high-income professionals. Prior to Biglaw Investor, Josh practiced private equity mergers & acquisition law for one of the largest law firms in the country.
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