These programs combine the construction financing and permanent financing of your new homes. You qualify for the loan once, lock in the permanent rate, sign one set of loan documents and have up to 12 months to complete the construction.
During the construction period, interest is charged only on the funds that have been disbursed. When the project is completed, the permanent loan period begins.
Depending on whether you can fully document your income or not, you can finance up to $3,000,000 and up to 90% of the future value.
One Time Close
This is a "One Time Close" construction loan program to finance the construction of a primary residence or a second home combining both the construction financing and permanent loan all in one closing. This means that you sign only one set of loan documents and do not have to worry about re-qualifying, re-appraisals, additional closing costs or signing additional loan documents.
Locking Interest Rate
You can lock in the permanent rate at closing, and have up to 12 months to complete construction. During the construction period, interest is charged only on the funds that have been disbursed. When the construction is completed, the permanent loan period begins.
Home Value Information
Unlike a purchase transaction of an existing home, a Construction To Permanent loan involves determining the value of something that is not yet constructed! To assist the appraiser and the lender in determining the value of the home after it is built, information must provided as to:
- What is going to be built or constructed?
- What materials are going to be used?
- How much will the material cost?
- How much is the actual work going to cost?
- How much did the land cost, what is it worth today?
- How much will be spent on plans and permits?
Contractor and Contract
You will have another very important item to be concerned with, which is your choice of the general contractor who will be awarded the contract and the actual text of the construction contract.
From the general contractor, we will need a resume and a builder's application to be completed along with a credit check. This is for your protection as well the investor's, and ensures that he/she is experienced, has a proven tract record, and will be able to perform under the terms of the contract. Each general contractor approval is good for six months. The fact that we approve a general contractor should not imply that we guarantee his/her work and/or performance.
The actual text of the construction contract is included in our application package. This is a standard contract that should be used. You should avoid using the services of a contractor who insists on using another text.
Income and Credit Information
In addition, we will of course need the standard income and credit documentation that is required in any real estate transaction.