Owner Occupied Construction Loan #2


Single-Close Construction Loan for 30 year fixed
6.875% @ 1 point on 30 Year Fixed

7.097% APR (annual percentage rate)

This single close construction loan program is also the permanent financing.  It is a 30 year fixed loan.  After the first 12, 18 or 24 months during construction, this loan begins 29, 28.5 or 28 year amortization without having to re-qualify, re-document the loan or get the house re-appraised.  Single close.  This loan has no prepayment penalty.  18 or 24 months construction is the same rate as 12 months.

The maximum loan amount is based on the “as completed” appraised value if the home to be re-modeled or added to is owned more than 1 year, otherwise the more restrictive of LTC or LTV is used.

Loan-to-cost/Loan-to-value ratios:

80% to $2,000,000, 70% to $3,000,000, 65% to $4,000,000, 60% to $5,000,000 and 55% to $20,000,000.

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.

Up to 55% debt ratios if disposable income is $9000 or more per month (gross income minus all monthly obligations), and this is almost always the situation on higher loan amounts.

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.