The Easiest and Most Flexible Construction Loan Available!
You want to build your home, your way, and we want to help you do it! We empower you to design your own home, hire the subcontractors you want, and purchase the materials you want. Building a home is a big project! Don’t choose a lender that will add to the head ache. Choose Owner Builder Loans!
Construction Loans For:
- Do-it-yourself home builders who want to act as their own general contractor
- Primary residences, rental properties, or investment properties
- Individuals using their own labor
- Conventionally framed homes
- Log homes
- Timber framed homes
- Kit Homes
- The minimum loan amount is $10,000.00
- The maximum loan amount is $400,000.00
- 12-month construction loan with a 12-month extension available for those who qualify
- NO Pre-payment Penalty!
- We offer absolutely UNLIMITED draws with absolutely ZERO draw fees!
- Draws are disbursed in advance of construction and once progress has been inspected, you can make another draw.
- Draws can also reimburse you for funds you have already spent as long you meet the invested equity requirement.
Interest Rates and Fees:
- You are assessed interest ONLY on the amount of money which has been drawn from the loan, not the entire loan amount
- Our loans carry a variable interest rate which is tied to the Wall Street Journal’s Prime Rate. The interest rate you are charged is the sum of the Wall Street Journal’s Prime Rate plus a fixed margin rate which is based on your middle FICO credit score. Should the Prime Rate change, your rate will also change at the same time and in the same amount.
- The loan is charged a 1 point Processing Fee after every 3-months the loan is outstanding. If you loan remains outstanding for the full 12-month term, your loan will have been changed a total of 3 points.1 point is equal to 1% of the total loan amount.
- The following closing costs are paid FROM the construction loan at close:
- Origination Fee of 1 point paid to the Mortgage Broker (1% of loan amount)
- Closing agent’s fees for but not limited to title insurance, closing, and recording fees
FICO Credit Score Requirements:
- All borrowers must have a middle FICO credit score of at least 700 to qualify
- Flexible programs for veterans are available with lower FICO credit score requirements
Maximum Loan-to-Value and Loan-to-Cost Ratios:
- The maximum loan amount can be no greater than 75% of the project’s appraised value as reflected by the lower of either the sales approach or cost approach