Construction Loan #5

Details:

Single-Close Construction Loan
3.50%% on 5/1 ARM @ 1 points (fixed 5 years)

3.751% APR (annual percentage rate)

This single close construction loan program is also the permanent financing. It is a 5/1 Year Adjustable Rate Mortgage with the initial interest rate fixed five years.   After the first 60 months, this loan adjusts annually for the next 25 years.  The loan has a 2% annual cap, a 5% first adjustment cap, a 5% life cap over start rate, and a 2.5% margin over the 1 Year LIBOR. 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:

80% to a loan amount of $2,000,000

75% to $2,500,000

call for loan amounts above $2.5M

Ground up construction or rehab/remodle both available. No owner builder or construction supervisor options. A licensed general contractor must being doing the work.

Full income and asset documentation required. No stated income available. Qualify at 2% over the start rate on this 5/1 Year ARM, with 45% maximum debt to income ratio.    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. Principle residence can only be a single family.  Two units (duplex) not acceptable.

No spec. No rental properties, no manufactured (modular OK).  No commercial or mixed use.

Adjustments to pricing:

Add .25 to points if credit score 680 to 730

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

Minimum loan amount $700,000

Note: APR (Annual Percentage Rate) based on loan amount of $700,000, middle credit score of 700+,  and 12 draws.   This APR is currently very low because if this loan were to adjust today, it would adjust to under 3.7%.

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