Details:
Single-Close Construction Loan, 80% to $2M
5.875% on 7/1 ARM (fixed 7 years) @ 1 point
6.312% APR (annual percentage rate)
This single close construction loan program is also the permanent financing. It is a 7/1 Adjustable Rate Mortgage. After the first 84 months, this loan adjusts annually for the next 23 years. The construction period is 12 or more months, during which time the loan is interest only on the amount drawn, at the above interest rate. This loan has no prepayment penalty. 18 months construction is the same rate.
The maximum loan amount is based on the “as completed” appraised value if the vacant lot, home to be re-modeled, or home to be torn down is already owned. 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.
Loan-to-cost/Loan-to-value ratios:
80% to $2,000,000, 75% to $3,000,000 and 70% to $3,500,000
Ground up construction or rehab/remodel both available. No owner builder or construction supervisor options.
Full income and asset documentation required. No stated income available.
No spec. No rental properties, no manufactured (modular OK). No commercial or mixed use.
Minimum loan amount $350,000.
Note: APR (Annual Percentage Rate) is based on a loan amount of $500,000, middle credit scores of 700+, and 12 draws.
Fees, points, and program parameters subject to change without notice.