 Advantages
- Low rate, low points, no prepayment penalty.
- The lender will make an aggressive offer to modify your note between the end of construction and the end of the 12th month. The cost is $250 to modify to a 3/1, 5/1 ARM, or to 30 year fixed rates. No additional documentation is required, and no loan, appraisal, title, escrow or other fees will be charged. The lender Fed Ex's a couple of pages which you sign, get notarized, and send back.
- New construction, rehab/renovation, or "teardown" are
OK.
- Owner occupied single family homes are eligible.
- Loans to $1,500,000. Call for add-ons over $650,000.
- Stated income to $1,000,000. Call for pricing.
- If the property is already owned, even if for only 1 day, this program allows for the use of the future appraised value of the completed home (with the loan not to exceed 95% of total costs).
- Builder friendly. Your builder proposes a draw schedule. No limit on the number of draws. No retainage if the loan- to- value is 90% or less.
Limitations
- No owner/builder or manufactured home on this program. Call for other programs that allow manufactured homes. Call for owner/builder programs.
Loan-to-Value
Percentages
| Single-Family Residence:
|
95% to $400,000 loan amount |
| |
90% to $500,000 loan amount |
| |
80% to $650,000 loan amount |
| |
70% to $1,000,000 loan amount |
| |
65% to $1,500,000 loan amount |
Call for construction loans on 2nd homes.
Loan Fees
Lender fees: a .5% construction management fee, approximately $600 in draw inspection fees depending on the number of draws requested, $375 underwriting fee, $275 document fee, $300 closing fee, $79 tax service, $50 wire, and $25 flood certification.
Broker fees: $350 processing fee in addition to points, if any, shown with rate quote.
Paid to others: Appraisal fees $300-500 for one appraisal (two appraisals if loan amount over $650,000), credit report $18-55. Title and escrow fees (these vary depending on the title company and your county).
Fees, points, and program parameters subject to change without notice.
|
|
