Single-Close Construction Loan
4.625% on 10/1 Year ARM @ 1 point (fixed 10 years).
4.921% APR (annual percentage rate)
NEW: Lending off the “as completed” appraised value six months after owning the vacant lot or house.
This single close construction loan program is also the permanent financing. It is a 10/1 Year Adjustable Rate Mortgage, fixed 10 years. After the first 120 months, this loan adjusts annually for the next 20 years. The loan has a 2% annual cap, 5% first adjustment cap, a 5% life cap over start rate, and a 2.75% margin over the 1-Year LIBOR (London Interbank Offered Rate). 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 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.
80% to a loan amount of $1,000,000
75% to $1,500,000
70% to $2,000,000
65% to $3,000,000
Ground up construction or rehab/remodel 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 10/1 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.
No spec. No rental properties.
Minimum loan amount $350,000.
Note: APR (Annual Percentage Rate) based on loan amount of $500,000, middle credit scores of 700+, and 12 draws.
Fees, points, and program parameters subject to change without notice.
Add .25% to rate if the loan amount is under $1,000,000. Subtract .25% from rate if the loan amount is above $1,500,000.