 Advantages
- Low rate, low points, no prepayment penalty.
- The lender provides a float down option. At the completion of construction, the lender will modify the note to 30 year fixed rates for a $250 charge. No additional documentation is required, and no loan, appraisal, title, escrow or other fees will be charged.
- New construction, rehab/renovation, or "teardowns" are OK.
- Owner occupied single family homes are eligible.
- Loans to $1,000,000. Add .125% to the rate for loans $650,001 to $1,000,000.
- Stated income available. 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 |
Call for
construction loans on 2nd homes.
Loan
Fees
Lender fees: up to 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.
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