How to Launch and Finance a Home Rebuild after LA County Wildfires

Orange County Register, Jan. 30, 2025-Jeff Lazerson
Consider what’s involved in construction financing, assuming you don’t have the liquid funds available to cover the cost of rebuilding. Construction loans can run as long as 24 months until the repayment money is due.

There are two types of construction loans. One finances the construction costs with an interest-only loan. Once the construction is completed, you must take out a regular mortgage. This is called construction-to-permanent financing or getting a take-out loan.

The other program is called a one-time close or OTC loan. This is a combination construction loan (interest-only during the construction period) that rolls over to a 30-year permanent financing mortgage, requiring principal and interest payments.
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