Construction / Permanent

Construction / Permanent Loan
 
Builder completes a one-page builder application with references. The will then call the builder’s references and check credit. Applying broker will receive approval. Process the loan as you would any other loan. The appraisal should be per plans and specs.
An itemized cost to build, prepared by the builder, should be included.
The following questions must be answered prior to loan closing:
  1. Who owns the lot?
  2. Is the lot owned free and clear?
  3. Is the Builder/Contractor holding any earnest money?
  4. Is the Builder/Contractor paying any closing costs?
  5. Is the Builder/Contractor expecting an advance at closing?
 
Borrower pays fixed interest during construction based on the outstanding loan balance.  The loan is a Full Doc Fixed Rate- 11 Month Lock on a conforming loan.  The maximum Loan-to_Value (LTV) is up to 90% of the appraised value.  Borrowers mus have a middle FICO score of 700.  Borrowers will be required to provide full documentation. We can lock the permanent interest rate before the initial closing at a par-plus price.  Permanent rates will apply during the construction time period.