Construction Loan #5

Details:

Residential  Construction Loan
5.99%  Fixed 6 months.  3 points

8.848% APR (annual percentage rate)

Stated income OK on this interim construction loan program. This loan is not the permanent financing.   The interest rate is fixed 6 months.  Add 3% to rate for months 7, 8, and 9.  Loan interest is charged on the full loan amount from the 1st day.  It is not interest only on the amount drawn.  700 middle scrore required (possible exceptions down to 660).

Pricing adjustments:

Add 1% to rate and 1% to points if non-owner occupied (includes spec and rentals).

Add 1 point for construction completion.

Subtract 1% from rate if 740+ credit.

Loan amounts to $600,000.  1-2 units stick built.  Land must either be free and clear or current liens willing to subordinate (approved case by case).  New construction completion OK, but no rehab/addition.  No interest reserve.  Loan payments due monthly.  

Maximum Loan-to-value 70% on owner occupied and 60% on non-owner occupied and spec.    Owner builder OK if experienced.   Even if land free and clear, borrower may be required to bring in part of construction costs, or show receipts and cancelled checks for site work, verticle construction already completed and soft costs.

Note: APR (Annual Percentage Rate) based on loan amount of $400,000.

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