Question
I am thinking of applying for business loan to build custom home. They ask for 3.5% interest, is that high or reasonable?
I need investment to build custom home, then sell to make profit, it will take at least two years to build, until the house sold, during this time, how do I pay back the loan? What is reasonable arrangement?
Answer
Depending on: The state you live in, the type of loan you have applied for, and weather you've applied with a personal or a business bank account that interest is pretty good as you would typically see up to 8-12% (even with great credit) anywhere. Check the the Federal Housing Administration Loan Cap in Your Market by googling that + "state + county".
