Construction Loans
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There is no maximum loan amount for our Construction loans. Client needs a 680 or above credit score to qualify. Loans are available to US and Canadian citizens in US Dollars. Our Bank will only sit in first lien position, therefore the land cannot have a loan attached to it if the client wishes to proceed with a construction loan.
The land will need to be paid for outright. We require US/ Canadian taxes to qualify the client, but if tax returns do not show sufficient income, we can use personal bank statements as an alternative.
Loans are made at 65% LTV (loan to value). An appraisal is done of the lot plus the architectural plans and a future value is determined based on comparables in the area. The lender will lend 65% of this appraised value.
The lender does require that 30% of the home is completed before the first draw on the loan is made, however if you use their preferred builder, they will build the first 30% with no out of pocket costs for the client.
The construction loan transfers automatically to a permanent loan after the home is completed. Interest rates and terms are outlined below:
- 10yr loan fixed for 5 yrs @ 7.59%
- 15yr loan fixed for 5 yrs @ 7.80%
- 20yr loan fixed for 5yrs @ 7.99%
- 30yr loan due in 15yrs @ 8.75%