Loan Features

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 or rental properties
  • Individuals using their own labor
  • Conventionally framed homes
  • Log homes
  • Timber framed homes
  • Kit Homes

Available Loan Amounts:images (5)

  • The minimum loan amount is $10,000.00
  • The maximum loan amount is $400,000.00

Loan Duration:

  • 12-month construction loan with 3-month extensions available for those who qualify
  • NO Pre-payment Penalty!

Draw Process:

  • 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 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)
    • A Processing Fee of 3 points is paid to us, the lender (3% 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

Debt-to-Income Ratios:

  • Your debt-to-income ratio cannot exceed 38% after we factor in an amount to cover the monthly principal, taxes, and insurance expense for your end-loan. Your debt-to-income ratio is loosely defined as the percentage of your gross monthly income which needs to be budgeted to service your minimum monthly expenses. You typically only need to factor in items that would appear on your credit report but items like alimony or child support are also considered.

If you currently do not qualify, please call (800) 543-5600.   We may still be able to help you.