At least once a day, I get a call from a small builder who has 2 or 3 houses that they can't sell and they need to pay off their construction loans. The interest on these loans can be steep. Many builders are forced to try to refinance to a permanent mortgage and rent the houses.

This is a tough situation. Most lenders do not want to refinance rental houses for builders. The risk of the builder going under is high. Also, the houses are usually on the market, which is a big no-no when it comes to getting a mortgage.

Now, builders have a solution. Katz Mortgage Team is now offering a Builder Bail-out option ARM. Builders qualify if they meet the following requirements:

* Refinance of construction loan only, no cash out

* Property must be owned for at least 12 months

* Full doc only, no stated income

* 680 middle credit score minimum

* 80% loan to value maximum

* Property nust be off the market at time of loan application 

* Property must be deeded in the builders name before closing

As the mortgage market continues to tighten, I cannot make any promises as to how long this program may last. If you have any questions, please give me a call.

Stephen Katz

Katz Mortgage Team