I just got off the phone with one of my favorite Lenders and he just received an e-mail this morning that his bank is lowering the boom (or raising the bar) on construction loans. It looks like people trying to get this type of loan will have to do a lot more jumping through hoops now. This Lender will now only work with you if you are using a well known Builder and will now use actual value instead of appraised value. You will probably have to have a lot more of your own money in the pile now as well. The bottom line is you will probably be better off buying an existing property unless you have money to burn.
Coastal REO Solutions - Myrtle Beach Short Sales & REO's - Myrtle Beach, SC
Prudential California Realty - Millbrae, CA
Prudential | 650.504.8190
Welcome and congrat. hope to see more of your blogs. Happy new year and good luck in 2009. If I find a client who needs construction loads I come looking
Jan 06, 2009 12:23 PM
Prudential Douglas Elliman Licensed Real Estate Salesperson - Woodhaven, NY
Realtor, Brooklyn - Long Island - Queens Homes
Hi Steve and welcome to active|rain.
Ain't that the truth! An existing property in this market is way to go... without a doubt.
There are thousands of tips, tools, and tricks of the trade here. Be sure to check them out. Best of luck and see you around.
Jan 06, 2009 02:33 PM
KEIRE Realty Group - Manassas, VA
Principal Broker/Owner
Hello Steve,
Welcome to ActiveRain and congratulations on your first post. Best of luck to you!
-Keith
Jan 06, 2009 02:59 PM
Keller Williams Realty, Spartanburg, SC - Spartanburg, SC
Welcome to the Active Rain community. This is a great site with lots of information. Have fun with it and hope to see more of your blogs soon! We have a team of three outstanding full time agents to assist your buyers and sellers in Spartanburg/Greenville, SC. Let us know if we can ever help. Again, welcome to AR!!
Jan 06, 2009 11:16 PM
Paula and Company Realtors - Oklahoma City, OK
Paramount Residential Mortgage Group, Inc - Lake City, FL
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