1. With our program, the loan amount is based on the Value, not the price. If the value is high enough you can borrow more than the cost allowing you to put only $5,000 down. As long as it is less than 90% of the Appraised value, you can finance 100% of Land, Construction Cost, Closing Costs, and Interest (less the $5,000.00 down payment)
2. When the loan is initially closed the payoff or price of the land is funded putting the property in your name. Closing costs, real estate commissions, and a 10% builder advance are also funded at the initial closing. The remaining balance of the loan is disbursed through draws. Once the home reaches a new level of completion, an inspector is sent to verify and the draw is issued within 24 hours.
3. Using this program to finance a Builder Spec allows the builder to act as an investor. The builder must personally sign the note and mortgage. Our program allows many builders who are unable to obtain bank financing to finance their homes. Our program looks at the builder's personal credit, and in some cases the program allows another person to co-sign with the builder to help qualify.
4. Once construction of the home is complete, the loan modifies into a permanent mortgage. This allows you to keep the home for as long as you like. Many of our clients keep the homes as long term rentals, others attempt to sell the homes upon completion. The loan can be modified to a fixed rate or adjustable rate, an interst only or a fully amortizing loan. Your numerous options after construction give you a very flexible exit strategy.
5. In addition to a flexible end loan upon completion many of our clients receive a line of credit for the available equity. If you qualify for this home equity line of credit you will have access to the difference between the costs and the full 90% of appraised value. You can use this money to make mortgage payments or to buy additional properties. No other program gives you access to the equity in your home as soon as it is complete.
6. Mortgage Brokers can work with our program with no previous construction perm experience. With our program the broker is not required to process the loan. The processors help the mortgage broker every step of the way and complete the bulk of the work. The mortgage broker takes the initial application and works with the borrower and builder and the lenders team handles the rest.