RE Construction Loans

Spec Residential Construction Loans
1-4 Family Residential construction loan for custom residential real estate borrowers to fund the acquisition of vacant infill residential lots or an existing owned 1-4 Family property that will be demolished, plus the construction costs to improve the subject property for resale purposes.

Term:  12-24 Months

Value:  Loam amounts are calculated using the following Loan to Value to Cost criteria:

RE construction matrix

Rate: 1 Month LIBOR + Margin (4.75%)

Fee: .75%

Payment: Interest Only during construction. The payment is calculated from the amount of funds that have been disbursed.

Steps:
We prescreen your project budget and guarantor personal financial statement
Upon review with department management and credit administration (if applicable), we issue an LOI
At receipt of LOI and deposit, we initiate appraisal
We have the licensed contractor complete an application, supply copy of his general contractors
License, cost to construct, plans, signed contract between owners and builder and copy of his general liability insurance for approval
The appraisal is prepared from plans, cost to construct breakdown, and site inspection.
There can be no other financing on the property during construction so the existing mortgage will be paid off through escrow.

Draws:

 

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