Most buyers seek move in ready properties at the top of their price range because they don't have money left for improvements after close. The smaller a down payment the less likely to qualify for home equity lines to finance improvements. Changes to the lending industry make obtaining high LTV 2nd mortgages uncertain and rates for home equity lines have nearly doubled in the past few years.
Construction to permanent financing programs enable you to borrow the future (improved) property value & roll remodeling costs into a new (lower interest) 1st mortgage.
Sellers: Sell faster at top dollar by making your home move in ready for future homebuyers.*
Buyers: Negotiate a lower "as is" price and start your remodeling immediately after close.+
- Borrow on the FUTURE improved value of your property to finance construction costs.
- Pay interest only on the home you purchase or own throughout construction for better cash flow.
- Pay only on the amount borrowed to date, not the entire loan balance.
- Make progress payments to your Builder & subcontractors via a local title company based on percent completed.
- Convert to permanent financing upon completion without re-qualifying when your finances & credit scores are likely to be at their lowest.
*Property cannot be listed for sale to qualify for most refinance programs.
+Requires prints, appraisal & pre-approval of general contractor or construction manager.
For more information on this & other programs contact:
Mortgage Specialist Greg Zaccagni @ 630-480-0876
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