I currently own a lot in a Greg Norman Golf Course community located in California. I purchased the lot in October of 2005 and I owe approximately $602,000. The current value of the lot is approx $950,000. A house is being constructed on each side of my property–which are expected to be worth 2.8m a piece. These two homes are about 800 sq ft larger than mine, so my expected value should be somewhere around 2.7m. So, as far as I can see, I am in an excellent position LTV wise. I have completed plans and am looking to construct a 5100 sq ft home on this lot. My current broker indicated that “the lender market is changing” and that it may be difficult to obtain a construction loan on a stated program. I realize that some banks are shifting to the more conservative side of things; however, I think things just might be “changing for him” and it doesn’t necessarily have to affect my loan. I have paid out-of-pocket around $30,000 for soft costs (architect, engineers etc.). My question is what resource should I seek out to meet my needs for a construction loan for this particular project. I am ready to submit to city and I really need to move fast otaining a loan at this point as I am paying-out $5100 a month–just for the lot! Any suggestions??


There are plenty of options available to you in regards to getting this property going. Do you have additional funds to put into the project or were you looking to just use the equity in the land as your down payment ? What is your cost to construct? Much more information needs to be provided beofre a feasible solution can be given.

Is this going to be owner occupied or an investment. You won’t have any trouble at all if you will live there especially since you already own and have equity in the lot. If it is an investment property, it will be tougher because there are very few conventional construction lenders that loan on NOO.