Anyone running into issues with lenders willing to loan on presale single family construction?

By
Real Estate Agent with Team Reba of RE/MAX Metro Eastside www.TeamReba.com

I found that my contact at Bank of America does have options available and they're offering up to a 6-month loan rate lock. I'm curious if anyone has seen anything else out there.  My clients and I are talking to a new construction project that is investor funded and the 17 lots platted already have 4 houses up, including the model, with one of them a property they'll consider - or they'll choose another lot and put the house they want on it with a couple of modifications that will work better for them.

Rates are awesome so getting them into a loan soon would be good but I am concerned that the builder says only 90 days for construction once they break ground because most new construction I've seen takes up to 6 months, easy, since up here building is affected by weather. 

I have to say that the Whisper Woods development in Snohomish is pretty nice and I'd recommend anyone looking out that way to go check it out. Compared to a lot of the resale properties in that area, it's a pretty darn good value.

Comments (1)

Kevin Pierce
Cascade Builder Services - Tacoma, WA
New Construction Warranty Management

Many spec builders have their construction schedule down to 50-60 working days which usually turns out to be about 3-4 months.  If the builder runs a tight ship, that timeline doesn't seem abnormal.

Feb 02, 2010 07:35 AM