Construction Loan

I own 5 improved lots in Arizona City, Arizona. My defintion of an improved lot is paved street, curb & gutter, water meter, sewer, electric and telephone. These lots are worth 30K-35K. There is no balance owed on the lots. They are free and clear. The new homes (1500 SF) in the area are selling for 200K. I have plans for a 1625 SF home in plan check. I will break ground to build this house 2-01-06. I am a licensed general contractor in Cailfornia and Arizona. I have been in business for 25 years. I have a FICO of 686. Even though I have the funds to build this house, I am looking for alternative ways to finance the project. I would like to obtain 90K. Could someone offer suggestions?


Current construction lending interest rates are at prime and/or prime +1 depending on the program and the package.

WSJ Prime Rate 7.000

What is your intention with the property? Are you going to occupy 1 of the 5 lots?

Either way, lenders offer construction loans that can get you to 90%.

There is a program called a"one time" construction loan and all funds for purchase and construction are secured by the person building. If you had 2 homes where the clients were approved for these loans, none of your resources would be used for either.

If you are going to build one as a primary then you would be able to use this loan as well.