construction loan: Breakdown of Construction Draws for Construction Loans - 02/18/09 12:32 PM
CONSTRUCTION DRAW FINANCING
The following is meant to be a general guide to construction financing. Policies, fees and interest rates will differ for each lender who offers construction financing.
Most lenders will require a complete package when submitting for a construction mortgage approval.
Eligible Purposes:
•· Purchase from residential home builder
•· Purchase from a contractor
•· Self-build home
•· Renovations or improvements of existing home where there are structural changes or costs exceed the lesser of:
- 10% of current value or $25,000 (if conventional mortgage)
- 10% of 'as improved value' or $10,000 (if … (0 comments)
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construction loan: Construction Loan for Vacant Land Purchase to Build a Home - 02/07/09 06:46 PM
Here are 3 common contruction loan scenarios:
1. Clients purchase land and build a house on the land, most of these clients own the land ( free & clear) and requested for a progress financing loan from the bank. The only challenge is that, progress financing can be expensive, as the bank requires the clients to get an appraisal done at every stage of the construction, ie : foundation, framing, etc. Some clients prefer to take out a private mortgage loan for the whole construction, ie: 6 months to 12 months time and refinance the house to payout the private loan when … (0 comments)
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