Single-Close Construction Loan, 80% to $2M
3.625% on 5/1 ARM (fixed 5 years) @ 1 point
4.312% APR (annual percentage rate)
This single close construction loan program is also the permanent financing. It is a 5/1 Adjustable Rate Mortgage. After the first 60 months, this loan adjusts annually for the next 25 years. The loan has a 2% annual cap, a 2% first adjustment cap, a 5% life cap over the start rate, and a 2.75% margin over the 1-Year LIBOR (London Interbank Offered Rate). 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.
The maximum loan amount is based on the lesser of total costs or the appraised value the first year of property ownership (vacant lot, home to be re-modeled, or the tear down). After one year of property ownership, the loan is based off the “as completed” appraisal with no loan-to-cost calculation. 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 $2,000,000, 70% to $3,000,000 and 60% to $4,000,000
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. Qualify at the start rate plus 2% on this 5/1 Year ARM.
No spec. No rental properties, no manufactured (modular OK). No commercial or mixed use.
Minimum loan amount $300,000.
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.