Single-Close Construction Loan
7.750% on 10/1 ARM @ 1.75 points
7.965% APR (annual percentage rate)
Unique single close construction loan for those in the construction industry (e.g., architect, foreman for someone else’s construction company, electrical contractor, project manager, etc.) to act as their own GC when clearly building their own primary residence and not a “spec” house for sale. 80% of the “as completed” appraised value one day after buying the vacant lot, property to be rehabbed, or torn down.
Add .5 to points for 2-4 units (planning to occupy one).
This single close construction loan program is also the permanent financing. It is a 10/1 Adjustable Rate Mortgage with the initial interest rate fixed ten years. After the first 120 months, this loan adjusts annually for the next 20 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. No loan-to-cost calculation if the vacant lot or tear down is owned at least 1 day.
On this program, lending off the appraisal, we do:
80% to a loan amount of $2,000,000. Call for higher loan amounts.
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 10/1 ARM.
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.