Single-Close Construction Loan

7.50% on 7/1 ARM @ 1.5 points (fixed 7 years)

7.910% APR (annual percentage rate)

Unique single close construction loan for a rental property of 1-4 units.  75% of the “as completed” appraised value one day after buying the vacant lot, property to be rehabbed, or torn down.  75% of market rents used to help qualify.

Add .5 to points for 2-4 units.

This single close construction loan program is also the permanent financing. It is a 7/1 Adjustable Rate Mortgage with the initial interest rate fixed seven years.  After the first 84 months, this loan adjusts annually for the next 25 years.   The construction period is at least 12 months, during which time the loan is interest only on the amount drawn. 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.

On this program, lending off the appraisal, we do:

75% to a loan amount of $1,500,000.  Call for higher loan amounts than $1.5M.

Ground up construction or rehab/remodel both available.

Full income and asset documentation required. No stated income available. Qualify at the start rate on this 7/1 ARM, but 75% of market rents per a rent survey will be used to help qualification.

Note: APR (Annual Percentage Rate) based on loan amount of $500,000  and 12 draws.

Fees, points, and program parameters subject to change without notice.