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Construction Loans
We have developed a number of new construction loan programs. With our loan offerings we can take your construction deals and turn them into closed deals and completed properties, translating into increased profits for you or for your company. We are offering loan programs on primary and secondary residences, as well as on investment and commercial properties. We have been closing on a variety of loan products for years, providing the timely answers clients need.
We will tailor loans to meet the needs of all contractors regardless of their credit background and building experience. We offer a vast array of construction loan programs from conventional construction loans to our new unique sub-prime construction loan program.
In the case of our conventional construction loans, we can make loans in all states from Maine to California. We will work to provide the best possible loan solution for you as a builder.
We also offer a new sub-prime construction loan. This program allows you to close construction loans that you would never have imagined possible. We are currently focusing on closing sub-prime construction loans in the New Hampshire, Maine, Massachusetts, Pennsylvania, Michigan, North Carolina, New Mexico, Texas and numerous other states throughout the country.
We will consider builders or borrowers who have credit as low as 480 providing they have property with which they can secure the loan. We have the ability to provide loans on either a full or stated income basis. The program is very simple. All you have to do is prepare a summary of your project for us.
I have enclosed four sections that will help you decide if your deal is realistic and merits submission to us:
1. Loan Product List and Description
2. Conventional Construction Loan Specifications
3. Sub-prime Construction Loan Specifications
4. Pre-qualification questions
Should you have any questions, deals or scenarios to discuss, please feel free to contact me direct at (603) 361-9816 or for your convenience you may email me at mortgagewomannh@hotmail.com. I will contact you to further discuss these programs. I look forward to discussing this matter with you soon and the possibility of working with you. We value your potential business and appreciate every opportunity to be of further service.
Sincerely,
Renee Prince
Loan Products
Custom Construction : Custom construction loans are for borrowers who hire a third-party general contractor to build their primary residence, secondary residence or investment properties.
Owner/Builder Construction: These loans are for borrowers who wish to act as their own general contractor to build their primary residence, secondary residence or investment properties.
Speculative Construction: This program is for borrowers who are building new homes for resale or investment purposes.
Construction Completion: These loans are for borrowers who require funds to finish construction of a new family home.
Substantial Rehabilitation: The substantial rehab program is for borrowers who wish to take equity out of their home to undergo a significant home improvement project.
Commercial Construction: This program is for borrowers who wish to take out loans for rehabilitation or construction projects on commercial property.
Land Loans: This program is for borrowers, builders or developers who wish to take out loans for cash out for debt consolidation, construction projects, sub-division purposes and the setting up infrastructure to develop any property.
Conventional Construction Loan Specifications
With conventional loans, specific loan factors can only be decided after we have received the completed loan application. We will then search to find you the best terms available. Conventional loans are for A, B and C credit borrowers. We are able to offer several products. Some of the specifications are shown below:
· We can offer construction only loans as well as construction-to-permanent
· There are full doc and stated income products available
· Our loans will typically run from 6-18 months, but special cases will be considered and extensions are possible
· LTV’s on loans of this type can often run as high as 100%
· In most cases draws on these loans can be made at any time providing we have evidence of work being completed
· Some of our lenders look for past builder experience, although there are exceptions
· Interest only payments are available during the construction loan
· We can offer lot loans as well as loans for the construction phase
· We will consider all types of single family properties
Alternative Construction Loan Specifications
We will work on each loan application on a case-by-case basis, after the application is submitted. Some of our loan specifications are as follows.
· We will make loans for first mortgages and seconds will be considered on a case by case basis
· We will work with borrowers with all credit scores
· Our maximum available LTV is 75% of the completed value
· Typical interest rates on this type of project will vary
· On all construction/land loans there will be a 1-2 year balloon
· We will work from the appraised property value on a case by case basis, not on the cost of construction
· If the borrower returns to us for the long term mortgage they will receive credit
The Next Step
If you feel that you or your client’s project may fit in to one of our offerings feel free to contact me, Renee Prince, at (603) 361-9816 or for your convenience you may email me at mortgagewomennh@hotmail.com. Some of the information you may wish to have available for our initial conversation is described on the following page.
Prequalification Questions
We appreciate all of your loan needs. We want to deliver a quote that will fit all of your loan requests. The key to the best pricing on any of our loans is the delivery of detailed and accurate information about the property and the plans and the motivation of the borrower.
We suggest that all contractors gather the pertinent information and the goals of the proposal, so that we can quickly customize and structure a loan to meet all their needs. This page used in conjunction with the construction loan summary and is designed so that you know what questions to ask and where to put the answers.
Type of Financing: Is this a request for a construction or substantial rehab loan?
Amount of Loan: How much are you looking for? For all construction loans we need to understand exactly what the borrower is planning to use the loan for. We also need to know if they own the lot outright or making payments on the lot.
We need to know exactly how much the property is going to be worth when construction is completed. In the case of spec homes, we need to know what their expected selling price is. Is this consistent with others in the area they are building? We will send out our own appraiser later in the process, therefore this initial figure will only be used as a guide.
Down Payment & LTV: The keys to fundable loans especially in the sub-prime market are the down payment and hence the LTV’s. In the case of our sub-prime construction loans it is important that you have either a significant down payment or substantial equity in a primary residence, secondary residence or investment property to secure the loan. After submission to us, we will make decisions on each loan application on a case-by-case basis.
Borrower Motivation: What are the key issues? Why are you doing this construction or rehab work? What are you looking for in a construction loan? Are you planning to sell the property when the construction is complete? Will this be your primary residence?
Builder/Contractor: Who will be coordinating and overseeing the project? Do you have significant experience in doing projects of this type? How long have you been in business? How long do you foresee the construction taking?
Description of the Property: Is the property prepared for construction? Is it safe? Where is it? Will it be part of a neighborhood or will it sit alone? Are there other houses of the planned type nearby? What was on the land previously? Are there any environmental issues regarding the surrounding area?
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