Single-Close Construction Loan
4.375%% on 7/1 ARM @ 1 points (fixed 7 years)

4.644% APR (annual percentage rate)

NEW: 4 years out of BK or Short Sale.

NEW: 100% loan-to-cost possible.  Lending off “as completed” appraised value from Day One, with no loan-to-cost calculation.

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 23 years.  The loan has a 2% annual cap, a 2% first adjustment cap, a 6% life cap over start rate, and a 2.5% margin over the 1 Year LIBOR Index. The construction period is at least 12 months, during which time the loan is interest only on the amount drawn, at a great low rate of only 2.0% over the 1 month LIBOR. 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:

89.99% to a loan amount of $1,000,000 with 740 credit, 85% to $1,000,000 with 720 credit, 85% to $1,500,000 with 720 credit.  Call for higher loan amounts to $3.5M.

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 Year ARM, with 43% maximum debt to income ratio.

Principle residence can only be a single family.  Two units (duplex) not acceptable.

No spec. No rental properties, no manufactured (modular OK and very modular friendly).  No commercial or mixed use.


Note: APR (Annual Percentage Rate) based on loan amount of $500,000, middle credit score of 720+,  and 12 draws.

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