Residential Construction Loans Are Making A Comeback!

Residential construction loans are staring to pop up again which is great news!

We can offer the following residential constructions loans.

The Owner Builder Program:

Build a new home.

For borrowers constructing their primary residence.

Owner-builder and contractor built are both acceptable!

Here are some of the guidelines for new home construction loans.

1) For Owner Occupied:

- Maximum loan to value is 70%.

- Term of loan – 6 months.*

- Minimum credit score of 700.

2) Non-owner occupied.

- Maximum loan to value is 60%

- Minimum credit score of 700.

- Term of loan – 9 months.

Other new home construction loan parameters:

Property:

Single family residence – stick built only. 1-2 units acceptable for non-owner occupied.

Appraisal based on a maximum of 5 acres with close, recent and similar sold comparables; non-rural.

Loan limits:

$50,000.00 to $400,000.00

Credit and credit scores:

Use the lowest mid-score of all applicants.

Five year seasoning on all bankruptcies.

No reporting foreclosures, short sales or deeds in lieu of foreclosure.

Terms:

All loans for construction term only, not permanent.

Interest only payments based on gross loan amount, due monthly.

Subject to:

Builder approval and construction budget approval.

General notes:

No land payoff, subordination not allowed. Land value not included in cost calculations (LTC).

Add 1% to fee for completion requests (no debt payoffs). All non-owner occupied requests require

a satisfactory business plan. Construction industry related borrowers must qualify using non-owner

occupied guidelines. Stated income available for non-owner occupied programs.

4506 tax form required.

The Spec Program:

Build a new home

Spec financing for builders constructing a home they will sell.

Please see the guidelines for non-owner occupied restrictions.

*3 month extension option available*

Lending in the following states:

Alabama

Hawaii

Maryland

New Jersey

Alaska

Idaho

Massachusetts

New York *

Arizona

Illinois

California

Indiana

Colorado

Kentucky

Georgia

Maine

Michigan

Missouri

Minnesota

Nevada

North Carolina

Ohio

Oregon

Pennsylvania

Tennessee

Texas **

Utah

Virginia

Washington

Owner occupied program is not offered in

Indiana, Maine, Minnesota, New Jersey, North Carolina or Ohio

*Consumer loans in New York require a minimum loan of $300,000.00*

** Owner occupied self-build projects in Texas require existing home ownership in Texas**

Contact us for more information.

Contact Us.

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