Construction Loan #1

Details:

Single-Close Construction Loan
4.000% on 2/1 Year ARM @ 1 point

3.459% APR (annual percentage rate)

This single close construction loan program is also the permanent financing.  It is a 2/1 Adjustable Rate Mortgage, fixed 2 years.  After the first 24 months, this loan adjusts annually for the next 28 years.  The loan has a 2% annual cap, 2% first adjustment cap, a 6% life cap over start rate, and a 2.75% margin over the 1-Year Treasury Weekly Average. The construction period is 12 months, during which time the loan is interest only on the amount drawn, at the above interest rate.   This loan has no prepayment penalty.  

The maximum loan amount is based on the lesser of total costs or the appraised value of the property.  The appraisal will be done from the plans, and a value will be determined that represents what this house would be worth in today’s market if already completed as planned. 

 We do:

75% to a loan amount of $1,000,000

70% to $1,500,000

65% to $2,000,000

60% to $3,000,000

Ground up construction or rehab/remodle both available.  No owner builder or construction supervisor options.  A licensed general contractor must being doing the work.  Owner builder for GC who makes their living as a GC, with job income not capital gains (which would imply a spec deal).

Full income and asset documentation required.  No stated income available.  Qualify at the start rate on this 2/1 Year ARM, with 45% maximum debt to income ratio.  50% debt ratio possible at 70% loan-to-value or less.  Six to twelve months of PITI (principle, interest, taxes and insurance) required in reserve after close of escrow depending on loan amount.

Second homes to $1,500,000 loan amount available with the same parameters.  Owner occupied two units acceptable also. 

No spec.  No rental properties, no manufactured (modular OK).  Three or more units not acceptable.  No commercial or mixed use.

Pricing Adjustments:

Add .25 to points if credit score 680 to 730

Add .25 to points if loan amount over $1,000,000

Add .25 to points if loan amount $150,000 to $250,000.

Minimum loan amount $150,000. 

Note: APR (Annual Percentage Rate) based on loan amount of $500,000, middle credit scores of 730+, and 12 draws.  This APR is currently very low because if this loan were to adjust today, it would adjust to under 3.5%.

Fees, points, and program parameters subject to change without notice.