construction loans: Building a new home? Don't make these mistakes! - 02/06/19 12:30 PM
If you are building a home that is common for your area, a home where there are many similar homes that have sold in the last year, in the same area, for what it will cost to build your home or more, you can stop reading. On the other hand, if you are building an uncommon type of home, if your lot is larger than what would be common in your area, or the cost to build your home will be higher then what you can purchase a similar new home for, please read the following carefully!
 
 
Lenders don’t like “non-traditional” homes, they … (3 comments)

construction loans: New Construction Appraisals - 04/13/18 04:40 AM
So how do you appraise a home that isn't built yet? This is a question I get quite often when I speak to potential clients about construction loans. The answer is, plans and specs.
The appraiser will be given a copy of the legal description for your land, so they will know where you're building. But instead of being able to inspect an existing home, they will be given the plans for the home and the specifications of the materials that you are going to use. Then they will know what you are planning to build. With that information they will be able to … (3 comments)

construction loans: Looking for land - 04/11/18 03:27 AM
So you have your floor plan, you have your builder, you know what city/township you want to live in, all that's left is to find that perfect lot to build on.
First, you need to be realistic about what you can afford and what's going to fit your program and down payment. If you are paying cash for everything or at least putting a big chunk down (30% or more) then knock yourself out, buy whatever you want. 
If, however, you are putting 20% down on a conventional construction loan, or you are using the FHA/VA program, you need to think about getting … (1 comments)

construction loans: Cost Overruns, yikes! - 04/10/18 03:52 AM
It is so important that you borrow enough money to complete your home. 
Pretty simple concept, huh? Yet from time to time clients that have already closed on their construction loan call me up and say, "I need more money". Maybe they upgraded an element of their home. Maybe a contractor underestimated the cost of a portion of the home. Whatever the reason, it's a big problem once you have closed.
You essentially have three options; come out of pocket with extra money you need, get a "gift" from a family member or reclose your loan. The third option is going to be … (0 comments)

construction loans: Needed Documents for a Construction Loan - 04/09/18 04:00 AM
To apply for a construction loan you will need all the documentation that you need for any other type of mortgage application;
*Income- Most recent 30 days of pay stubs and last 2 years of W-2's. If you are self employed, write off any income, and/or own any other real estate, add your 2 most recent federal tax returns to the list. No state returns are needed.
*Assets- 2 most recent months of statements for all your cash accounts (checking, savings, investment and retirement).
*Credit Report- Lenders can run your credit report but I would rather I use one you have run until we are … (0 comments)

construction loans: Building Inspectors - 04/05/18 05:02 AM
As work is completed on your new home inspections will be done by the lender. These inspections are normally performed by the appraiser and are done to confirm that work was completed so funds can be disbursed to the builder (aka "draw").  
 
Several times during the building process your home will also be inspected by the local building inspector. Most of these local building inspectors are great people and are there to protect you. It is their job to make sure that the work was done in a professional fashion, and according to the state and local building codes. 
 
If the building inspector … (1 comments)

construction loans: Single Close or Two Time Close? - 04/03/18 09:05 AM
There use to be a time, many years ago, that if you wanted to borrow money to build a home you had to get a construction only loan. Once the home was completed you had to refinance that construction loan into your end or permanent financing. You paid 2 sets of fees, fill out 2 applications, qualify twice and close twice. 
If your financial or credit situation was worse when you applied for your end loan you could be in for trouble. You might have had to pay a higher rate, higher fees or worse off, you might not qualify for the end loan. … (1 comments)

construction loans: Using Land Equity with a Construction Loan - 03/27/18 03:32 AM
Land equity comes in three forms;
*First, gifted land- A family member has offed to gift you land, or sell it to you at a greatly reduced price, and you have accepted their generous generous offer. Congratulations, you now have equity in your project! How much equity will depend on the appraised value of your land and the value of your project. Take a look at what other similar parcels have sold for in the last year. Only count the usable lane. A ten acre parcel that has 9 acres of swamp is really a 1 acre parcel, just as an example.
*Second, … (3 comments)

construction loans: The Construction Loan Process - 03/16/18 07:45 AM
No one likes surprises. I'd like you to be fully informed about the application, closing and draw process before you begin. Here's a brief description of what you can expect as we move forward;
Pre-Qualification- We start with a phone call. We will discuss your employment, income, cash on hand, credit, land (if you already own it) and what you're plans are. If you wish to proceed, we move to Step 2 and begin to collect documents.  Documentation- I would need the following documents from you; Income- Your most recent 30 days of pay stubs and last two years of federal income tax returns. If … (2 comments)

construction loans: FHA, VA and RD Construction Loans - 03/15/18 02:59 PM
Yes, you can build a new home with FHA, VA and USDA loans. 3.5% down payment for FHA. 0% for VA and Rural Development. These are Single Close programs. One closing, one set of fees, no re-qualifying. 
Conventional loan programs require 10% to 20% down payment and minimum credit scores of 680 to 720. The VA and Rural Development loans are 0% down programs. The minimum credit scores for these programs is as low as 640. The FHA construction loan program can be used in as little as 2 years after a Chapter 7 bankruptcy, 3 years after a foreclosure (2 years for … (10 comments)

 
Jerry Thomas-Construction Loans, Construction Loans in MI, OH, VA, GA and FL. (Cranbrook Loans)

Jerry Thomas-Construction Loans

Construction Loans in MI, OH, VA, GA and FL.

Farmington Hills, MI

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Cranbrook Loans

Mobile: 586-917-5534

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