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God is the builder of everything. Hebrews 3:4
CONSTRUCTION LOAN APPLICATION. NEW!!! "NO RATIO" OWNER BUIlDER CONSTRUCTION LOANS!
The definition of "Owner-Builder" is YOU are acting as your own general contractor, and you will hire your own sub-contractors (i.e., framers, painters, roofers, electricians, etc.), you will be ordering out your own materials and/or do some, most or even all of the work yourself.
Is this you? Then you are an "Owner-Builder".
The only BAD thing about being an owner-builder is trying to locate financing. Since you are not hiring a general contractor, and the bank has no one to blame if things go wrong, you have effectively eliminated about 80% of all possible lenders. And, if you have "broken ground" by already starting to build, you have literally eliminated all but a small handful of possible lenders, because THEY DON'T DO THIS TYPE OF LOAN.
Allow me to explain: Lenders are deathly afraid of "Mechanic's Liens" - liens that are placed against your property by sub-contractors and material vendors due to nonpayment. If a bank loans you money, and you don't pay your subs, then THEY owe more money if they have to take the house back through foreclosure. It also has to do with Priority of the liens, the chronological placement of liens against a property (basically, who came first?), but we won't go into all that now.
HOWEVER - Not to Worry!!
Another HUGE issue with construction loans is getting your hands on your money after closing! Lots of lenders have "Draw Schedules" that you MUST adhere to, or only issue funds at certain stages of completion, or ONLY once per month. THAT IS NOT THIS LOAN!
My lenders let you take a draw whenever you need one - once a week, once a month, or at the end - it's up to you.
Owner Builder Construction Loans are available two ways:
WHICH ONE YOU GET DEPENDS ON YOUR TIME FRAME - either to break ground or to finish your home. However, it is usually worth the wait, IF YOU CAN, for several reasons:
If you are IN A HURRY TO GET YOUR MONEY then I suggest that you apply for a "Construction ONLY" loan. This is a MUCH quicker process! I have helped folks just like you close their construction only loans in as little as 2 1/2 weeks!
In order for this to happen so quickly, you must already have:
Once we receive them, it is just a matter of days until closing!
However, it is ultimately up to you which loan you desire, unless there are credit issues, then we will likely use the construction-only loan. Call me if you have questions!
Owner Builder construction loans also come in two distinctly different varieties when it comes to documenting income:
You will most likely fall into one of these two categories. For Full Income Documentation, you'll need to show enough income on your taxes "to make sense", i.e., you can afford the new house payment AND all your other payments. It's good, but not required, to have some "assets", meaning money in the bank, stocks, bonds, IRA's, etc., or other properties that you own, even the lot you plan on building your house on. Again, if you don't, JUST CALL ME! We can probably still get you a loan, as long as it makes sense.
For NO Income Verification loans, you will need to have a little better credit rating to qualify for the Construction-to-Permanent Financing Loan, typically a 680 or higher and for 100% of the costs we'll need the loan amount to be less than $417,000 (as of August 28, 2007) AND you'll need some assets in the bank.
Anyway, if you DON'T have great credit, I have a GREAT "NO DOC" lender that we can talk to for a construction-only loan!! If your situation is not to their taste, and you are able to withstand the scrutiny, AND you have the ability to get a builder, then we can look at an FHA construction loan. But, those are time-consuming and paperwork intensive, but might be worth it if push comes to shove!
There are many ways to get qualified. Just call me, we'll talk about the best way to get YOU qualified for your construction loan. The way we do that is with "compensating factors". These compensating factors can be a low "loan-to-value", a big downpayment (or prepaid lot), lots of cash reserves or other real estate or other types of equities as additional collateral. Let's talk about it!
So - where do YOU go from here?
The first thing you need to do is either DOWNLOAD the loan application by clicking on it, or using the drop down menu, then fill it out and fax it to me toll-free: 1-877-428-8704. You can also APPLY SECURELY ONLINE by clicking it, or using the drop down menus. I'll get your loan application securely through the internet. Then I'll call you, either way, and we'll discuss all your options, and the best way to proceed with building your home!
NEXT, you need to download ALL of the forms below, whether you think you can qualify for the Construction-to-Permanent Financing or not. The reason, of course, is that if you don't qualify for one, we submit you to the other, and it justs makes your job that much easier!
These are also available on the FORMS page, but these first few forms that you will need from the very beginning are located here:
Forms You'll Need Right Away
Construction-to-Permanent Financing Budget
Construction-to-Permanent Financing Authorization Form
Construction-to-Permanent Financing Checklist
Materials Description Form (if your plans don't include Specs)
Construction-ONLY Financing Budget
Construction-ONLY Checklist
Construction-ONLY Information Form - Need in addition to Loan Application
Here are a couple more that you will want eventually:
Construction-to-Permanent Sample Draw Request Form
Construction ONLY Sample Draw Request Form
Mechanic's Lien Waiver
Our Privacy Policy
If you can't or don't have that capability, or if you have additional questions, please call me toll-free:
1-877-643-1203. I'll be happy to walk you through the process, and help get you qualified and on the road to building your dream home!
Toll Free: 1-877-643-1203 or 1-877-724-7549.
I look forward to working with you on this and all your future construction projects.
Fill this out RIGHT NOW and Find out in just a few minutes what we can do for YOU!
There are many different types of construction loans available, which means that we can probably get you a loan, even if you think your credit is not so great!**
CALL US TODAY!
Don't have it or can't provide it? Go NO DOC! With NO DOC you only need 10% down payment and a 680-credit score!
ALL my lenders have been hand-picked by me and they ALL make Owner-Builder loans, and they will also loan if you have already broken ground - Even if your house is partially completed! I have helped lots of folks that have been 30-75% of the way through building their house get a loan. So, I can probably help YOU, too!
A Construction-to-Permanent Financing loan includes not only the funds to build your home, but the "End Loan", too, which is your mortgage that you will be paying after the home is complete. Because it is truly TWO MORTGAGES that you are qualifying for, it takes more time. The lenders will qualify you FIRST for your "End Loan" BEFORE they qualify you for your construction financing. These two approvals are NOT done at the same time, so it typically takes longer to obtain this type of loan.
If this is you, then you can close SUPER fast! All we need is:
Construction Application
Construction-ONLY checklist .
The reason, of course, is that if we cannot prove that you make enough money to make the mortgage payments, the lender can only rely on two things:
Makes sense, doesn't it?
My Toll Free Fax is: 1-877-428-8704.
Email me: emharris@yahoo.com
I'm here to help!