Construction loans are
used to construct a building or for improvements of
real property and the land. These improvements
can be leveraged and stand as collateral for the loan.
3 Ways
to Get Started
Lot and home construction
being purchased at the same or near same time..
Lot owned free
and clear.
Lot owned with
mortgage balance.
Florida
Home and Loan has expanded its "One Time Close
Construction-Permanent Loan" offering. These programs
allow you to purchase the lot, fund
the construction and One Time Close
your single family home. If qualified, your
final interest rate will be THE LOWER OF
the initial rate lock ORupon
completion of the construction project , saving
you a substantial amount of money in closing costs.
Additionally, pre-owner lots and the Anticipated
Appraised Value can be considered equity.
Florida
Home and Loan construction department represent
dozens of the largest construction lenders in the
market. As a broker, we work for our clients and not
the lender, taking the time to understand your situation
and placing your loan with the lender whose programs
most closely match your situation and needs. Florida
Home and Loan will give you an unbiased advice and
support throughout the process. Construction lending
is a specialized part of mortgage banking and most
lenders or brokers do not have the experience to guide
you through this complex process. We have attempted
to give you some basic information here but please
do not hesitate to call to discuss your individual
project. At the most fundamental level, construction
lenders offer two types of product characterized by
how they base interest rates during the construction
phase. I will refer to these approaches as "One Step"
and "Two Step"
This
page is focused on new construction, if you are interested
in renovating an existing home please go to our Florida
Improvement Loan page.
Once
again, if you have owned your lot for 1 year, or if
you have documented "on site" improvements
to the property, we may be able to use this equity
to meet your down payment requirement or create an
interest reserve account. Depending on the size of
the interest reserve account, these funds may make
some or all of your payments during the construction
phase.
One
Time Close Construction/Perm Single Rate.
"One Step" program which protects you
against increasing rates and extended lock fees.
Interest only fixed rate during construction and
modifies into a permanent loan after construction.
Great flexibility and low rates on ARMs.
One
Time Close Construction/Perm Prime Rate Based.
"Two Step"
program allows you to borrow up to 95% of your
total cost for a Principal Residence and up to
90% on a Vacation Home. Based on the Prime Rate
during the construction period with interest only
collected on funds disbursed. Allows a 12 month
construction phase.
FHA 203(k). The FHA 203(k) allows you to purchase
or refinance existing housing and finance up to
110% of the costs needed to improve the
home. The 203(k) is ideal for "fixer-uppers"
or "handyman specials".
Lot Loans. Designed for those who found
the perfect lot but are not ready to build. Low
down payment loans available.
No
Documentationconstruction loans are now available!
No Doc, No Ratio and Stated Income are wonderful
for the self employed or anyone with difficult
to document income or asset situations.
Call
us today,
1-888-694-0455
for an Pre-APPROVAL.
Thank
you, for your interest in Florida Construction Loans.