Home Construction Loan
Home Construction/Perm Loan
Carteret
Mortgage Company has expanded
its “One Time Close Home Construction-Permanent Loan” offering. These
programs allow you to purchase the lot, fund the construction of your single
family home using a construction product combined with your permanent loan and
close only one time, saving you a substantial amount of money in closing costs.
I am a
mortgage broker and represent 16 of the largest construction lenders in the
market. As a broker, I work for my client and not the lender, taking the time to
understand your situation and placing your loan with the lender whose programs
most closely match your situation and needs. I am able to give you unbiased
advice and support throughout the process. Construction lending is a specialized
part of mortgage banking and most lenders or brokers do not have the experience
to guide you through this complex process. I have attempted to give you some
basic information in this paper but please do not hesitate to call to discuss
your individual project. At the most fundamental level, construction lenders
offer two types of product characterized by how they base interest rates during
the construction phase. I will refer to these approaches as “One Step” and
“Two Step”
This page is
focused on new home construction, if you are interested in renovating an existing
home please go to my construction
loans page.
If you have owned your lot for 1 year, or if you have documented
"on site" improvements to the property, we may be able to use
this equity to meet your down payment requirement or create an interest reserve account.
Depending on the size of the interest reserve account, these funds may make some
or all of your payments during the construction phase.
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Several Home Construction Loans include:
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One Time Close Construction/Perm
Single Rate. "One Step" program which protects you
against increasing rates and extended lock fees. Interest only fixed rate
during construction and modifies into a permanent loan after construction.
Great flexibility and low rates on ARMs.
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One Time Close Construction/Perm Prime Rate
Based. "Two Step"
program allows
you to borrow up to 95% of your total cost for a Principal Residence and up
to 90% on a Vacation Home. Based on the Prime Rate during the
construction period with interest only collected on funds disbursed. Allows a 12 month construction phase.
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FHA 203(k). The FHA 203(k) allows
you to purchase or refinance existing housing and finance up to 110% of
the costs needed to improve the home. The 203(k) is ideal for
"fixer-uppers" or "handyman specials".
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Lot Loans.
Designed for those who found the perfect lot but are not ready to build. Low
down payment loans available.
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Stated Income are wonderful for the self employed or anyone with difficult
to document income or asset situations.
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I have written a newsletter
covering home construction/perm loans, and a construction FAQ
is available.
I have a list of documentation needed
to process your loan.
There is a new page detailing home
construction
loan fees.
I have detailed information on extended
interest rate locks with a float down option.
I have a page on calculating mortgage qualification ratios.
I
have included detailed Frequently Asked Questions and common
misconceptions about the process of building your home with a construction/perm
loan.
I have also included information on the specialized areas
of log home, modular
home, or timber frame home
financing
If you are not ready to build but have found the perfect lot.
The new Purchase Plus Lot
Loan can save you a great deal of money.
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