Construction Loan Programs
What is a construction loan?
A construction loan is an interest only real estate loan that is secured by the projected market value of the developed residential property. The market value of the land (if owned by the Borrower) is used as equity. Such a loan can cover up to 90 % of the soft and hard costs of the construction works of a venture. Proceeds are distributed via scheduled installments after inspections of the construction site are conducted by the Lender and the loan balance needs to be paid in full by/on its maturity date.
What is the term/interest rate of a construction loan?
The term of a construction loan is generally 12 months with a possible 4 months extension (upon request). The interest rate is 4.99%, increasing with 0.5 % monthly; the interest rate cap is set at 8.99%. No prepayment penalty is applicable.
What is the minimum FICO to pre-qualify for a construction loan?
What are the fees affiliated with obtaining a construction loan?
What states does the construction loan program cover?
Commercial Loan Programs
What is a commercial loan and what class properties qualify?
What are the terms/ interest rate of a commercial lending?
Do I need an appraisal to prove the market value of the subject property?
What documents do you need to apply for a commercial loan?
To receive a pre-approval the following documents are requested:
– Completed 1003 form;
– Purchase agreement (if applicable);
– Preliminary title report for the subject property;
– Mortgage statements (if applicable);
– Borrower’s credit report.
If the loan application is pre- approved, submission package will need to include additional paperwork. For instance:
– Two years of company’s operating statements for existing entities;
– Rent roll, commercial leases, occupancy certification;
– 3 months bank statements;