costs; consisting of architectural plans, engineering and permit
costs; which are all the actual physical costs of construction.
costs; consisting of origination and lender fees, title, and closing
Reserves; consisting of interest reserve and contingency reserve.
lot pay off.
purchase money or refinance mortgages are based on Loan to Value
Ratio (LTV). Where as, construction loans are based on LTV as well
as Loan to Cost Ratio. Further more in a normal mortgage the closing
costs are added on after calculating the Loan to Value, whereas a
construction loan is inclusive of closing costs.
makes the whole thing more complex is the fact that the way these
numbers are calculated or the way the numbers are put together
differ from one investor to the next.
fact the calculations get complex enough that most loan officers in
most lending institutions don’t even know how to calculate a loan
amount, which results in last minute unpleasant surprises.
problem most applicants of construction loans face is when at
hour they get a call informing them of the final loan amount
as calculated by an underwriter which may not be sufficient
to meet the borrower’s needs.
Construction Loans FAQ we specialize in this type of financing. Our
familiarity with the guidelines of construction loans offered by
most major institutions makes it possible for us to choose the
program that best suits you and your project.
we are approved brokers with all these investors, the cost of the
loan to you is either the same or sometimes even better than
New Home Construction
loans are a specialized field:
as such we assign you an
expert consultant from the moment you apply. He/She will work
with you from the very beginning until the funding day, making
the process smooth and seamless.
Detailed FAQ on the entire process including Draw and Budget please
go to the:
Construction Loans FAQ
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