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Custom Construction
Custom Construction Loans are for borrowers who are hiring a third-party general contractor to build their personal residence. This may be the most common type of construction loan program available.
Your Owner-Builder Mortgage Broker should offer a variety of construction loans for borrowers who want to hire a licensed and experienced contractor for their new home construction. Many of these programs are "Construction-To-Permanent" programs or "One-Time-Close" programs that enable a borrower to close one time on their land, construction, and permanent mortgage. These products vary greatly from the construction-only programs as seen on this web site. For more information about Construction-To-Permanent financing and One-Time-Close construction loans, please visit our informational web site: www.construction-to-perm.com.
Use the form below to search for more information about Owner-Builder Home Mortgages and Home Construction Loans.
If you don't fit our Construction-To-Perm programs or don't want to setup your permanent financing now, you may want to consider the construction-only programs listed below.
Click below for More Information:
PLEASE NOTE: The information provided here is a sample of what might be available. It is not a guarantee of product availability or an offer to extend credit. Scenarios, rates, and guidelines vary depending on many factors including the state where the property is located, borrower's creditworthiness, assets, and current market conditions, among others.
Platinum Series
Custom Construction Programs.
- Stated Documentation with 700+ Credit Score
- Full Documentation with 600+ Credit Score
- Up to 80% Loan-To-Value & 90% Loan-To-Cost
- Owner Occupied
- Contractor hired to build home
- Non Arms-Length Transactions and Related Builders Acceptable!
- Six (6) Month Construction Term, extensions available
- Pay interest on disbursed funds only
- Working capital not needed
Details:
All loans have their own details, guidelines, and fine print. Here is a sample of what you can expect for Platinum Series Custom Construction Loans.
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Platinum
Program
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Minimum Credit Score
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Maximum Loan To Value
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Maximum Loan To Cost
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Variable Interest Rate
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Maximum Loan Amount
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P-C1
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750
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80%
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90%
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Prime + 2
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$400k
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P-C2
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725
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80%
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90%
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Prime + 2.5
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$400k
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P-C3
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700
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80%
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90%
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Prime + 3
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$400k
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P-C4
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675
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80%
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85%
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Prime + 3.5
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$350k
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P-C5
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650
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80%
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80%
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Prime + 4
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$300k
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P-C6
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625
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80%
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75%
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Prime + 5
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$250k
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P-C7
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600
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80%
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70%
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Prime + 6
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$200k
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Unlimited draws, requires 2% servicing fee.
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Stated Documentation allowed for Platinum Programs P-OB1, P-OB2, P-OB3 (minimum 700 credit score required).
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*APR cannot be calculated because of the variable prime rate. The above information is not a rate quote nor an offer of credit. The data is offered as a sample of what might be available and is for informational purposes only. Please contact your lender for actual rate quotes and guidelines based on your individual project and circumstances.
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Platinum Custom Construction Program Parameters
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Property
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Single Family Residence (SFR) and Duplex stick-built or modular homes. Log cabins (with acceptable comps).
Appraised value based on a max of 5 acres with close, recent, and similar comparable sales. Properties classified as rural are not accepted.
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Loan Limits
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up to $400,000 based on program guidelines
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Credit Scores
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The borrower's middle score is used as the qualifying credit score when a tri-merged credit report is used.
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Lender Fees
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Lender charges servicing fee of 2 points for unlimited draws, 1 point lender fee, $450 processing fee & $100 document preparation fee.
Your Mortgage Broker or Lender may charge a mortgage broker fee (or origination fee), plus applicable application and credit report fees.
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Terms
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Required payments are interest-only during construction, based on actual amount of disbursed funds. All loans are for construction term only and are not permanent mortgages. Your Mortgage Broker may also be able to obtain permanent financing at lower rates once construction project is complete.
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Subject To
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All loans are subject to builder approval, construction budget approval and acceptable appraisal review.
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Lending In
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Contact your specific lender to find out in which states they offer Owner-Builder Home Loans. This is not an offer to lend.
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PLEASE NOTE: The information provided here is a sample of what might be available. It is not a guarantee of product availability or an offer to extend credit. Scenarios, rates, and guidelines vary depending on many factors including the state where the property is located, borrower's creditworthiness, assets, and current market conditions, among others.
Standard Series
Custom Construction Programs:
- No Income Verification!
- No Seasoning or Tracking of Funds Used to Close!
- No Asset Verification!
- No Reserve Requirements!
- No Debt Ratios Calculated!
- Owner Occupied
- Self Build. No Contractor Needed!
- Non Arms-Length Transactions and Related Builders Acceptable!
- Six (6) Month Construction Term with Three Month Extension Option
- Pay interest on gross loan amount during construction
Details:
All loans have their own details, guidelines, and fine print. Here is a sample of what you can expect for Standard Series Custom Construction Loans.
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Standard
Program
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Min. Credit Score
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Max. Loan To Value
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Max. Loan To Cost
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Interest
Rate*
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Maximum Loan Amount
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S-C1
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680
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80%
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90%
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3.99 / 5.68apr
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$600k
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S-C2
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660
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75%
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85%
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4.99 / 6.80apr
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$600k
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S-C3
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620
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70%
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80%
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5.99 / 8.02apr
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$600k
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S-C4
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580
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65%
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75%
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6.99 / 9.32apr
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$600k
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S-C5
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540
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60%
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70%
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7.99 / 10.54apr
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$600k
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Discount Points between 1% and 2.5% based on loan program.
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Broker Fees vary based on property location, loan amount, construction length, etc. Rates and information is a sample of what might be available, please contact your Mortgage Broker to get an individual quote based on today's market conditions.
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*Rates and APR based on information available on July 10, 2006 and the following assumptions: $275,000 loan amount, 65% Loan to Cost, and assumed broker, attorney and settlement fees. Actual APR and rate will vary. Rates and terms subject to change without notice and are offered for informational purposes only. This is not an offer to lend or extend credit. We are not a mortgage broker or lender. This is only a sample of what might be available in the market place.
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Standard Custom Construction Program Parameters
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Property
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Single Family Residence (SFR) and Duplex stick-built or modular homes.
Appraised value based on a max of 5 acres with close, recent, and similar comparable sales. Properties classified as rural are not accepted.
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Loan Limits
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$50k to $600k (see applicable adjustments below)
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Adjustments
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If loan amount is $325k-$425k, reduce Loan-to-Value and Loan-to-Cost by 5%.
If loan amount is $425k-$600k, reduce Loan-to-Value and Loan-to-Cost by 10%.
If borrower has no mortgage history, reduce Loan-to-Value and Loan-to-Cost by 5%.
If land to total cost ratio is greater than 50%, reduce Loan-to-Value and Loan-to-Cost by 5%.
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Credit Scores
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The borrower's middle score is used as the qualifying credit score when a tri-merged credit report is used. The highest middle is used if there are two borrowers on the loan.
Borrowers must have two years of seasoning on all bankruptcies.
Foreign Nationals without credit scores are acceptable, but are limited to Custom Program L-OB4 (see above).
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Lender Fees
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Lender charges $995 underwriting plan and review, $435 document review, plus applicable discount fees seen in matrix above.
Your Mortgage Broker or Lender may charge a broker fee or origination fee, plus applicable application and credit report fees.
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Terms
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Required payments are interest-only during construction, based on gross loan amount. All loans are for construction term only and are not permanent mortgages. Broker can also obtain permanent financing at lower rates once construction project is complete.
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100% CLTC
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100% requires closing costs down and full lot subordination. Equity required.
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Subject To
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All loans are subject to builder approval, construction budget approval and acceptable appraisal review.
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Lending In
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Contact your specific lender to find out in which states they offer Owner-Builder Home Loans. This is not an offer to lend.
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PLEASE NOTE: The information provided here is a sample of what might be available. It is not a guarantee of product availability or an offer to extend credit. Scenarios, rates, and guidelines vary depending on many factors including the state where the property is located, borrower's creditworthiness, assets, and current market conditions, among others.
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