Construction Loan #6


3.875% @ 1 point on a 3/1 ARM, fixed three years

3.387% APR* (Annual Percentage Rate)

80% to $1,000,000, 75% to $1,500,000, 70% to $2,000,000, 60% to $3,000,000.

NEW: Experienced “Modified Owner/Builder” with fixed price contract with licensed GC to do major work including utilities, concrete, foundation, framing, etc. and the borrower performing or “subbing out” other work.

NEW: 100% loan-to-cost possible.  Lending off “as completed” appraised value from Day One.

This single close construction loan program is also the permanent financing. It is a 3/1 Adjustable Rate Mortgage with the initial interest rate fixed three years.  After the first 36 months, this loan adjusts annually for the next 27 years.  The loan has a 2% annual cap, a 2% first adjustment cap, a 6% life cap over start rate, and a 2.75% margin over the 1 Year Treasury Index. The construction period is at least 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 “as completed” appraised value of the property, without regard to total project costs. 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.

Ground up construction or rehab/remodle both available.

Full income and asset documentation required. No stated income available. Qualify at the start rate plus 2% on this 3/1 Year ARM, with 43% maximum debt to income ratio.    Six to twenty four months of PITI (principle, interest, taxes and insurance) required in reserve after close of escrow depending on loan amount.

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.







* Annual Percentage Rate based on $500,000 loan amount and 12 month term.