I have a construction project that I am starting, but it is hard for me to get financing. I have a 630 fico and hardly any reserves. This is my first development project but I have high level of experience.
How can I do this? Please someone help!
Also one of the properties that I am rebuilding was bought with conventional leading. I used reserves to buy vacant lot beside this one. Now I need 25,000 holding expenses for the mortgage payment.
Any advice at how I can acquire these funds? I want to do private money and I will pay whatever terms. The project will bee a profitable deal.
You need to keep calling different companies until you find one that can give you your answer.
Not all lenders are the same, so don’t loose heart.
What is your construction project?
How many properties are you rebuilding?
or Are you building on a lot from ground up?
if you have not found your money as yet message me as i may be able to help you out with one of the people i work with
Unfortunately, most constructions lending want to see some reserve or at leat 10% of your own money in the loan between soft and hard costs.
Maybe hard moneyif its a good deal or try Biz Mark Mortgage.
They have a subprime construction division.
have you found your money yet
There are a few companies which will allow up to 100% financing for construction which very highly depends on your credit, whether you’ve had a bankruptcy, foreclosure, etc. I personally don’t call every company because I have found a great website that always helps me out when I don’t know of a lender that will do the loan www.scotsmanguide.com If you need help with the website or have more questions please feel free to contact me.
Although there are only a handful of lenders that claim to offer 100% construction financing (getting it is another thing), the LTV sweetspot for construction lending is between 90-95%.
Check http://tinyurl.com/ycojqe to see if this makes sense (there is a spec loan version that is very similar for those builders that are building for investment).
Feel free to contact me if you want further details.