Hello are there any lenders out there that would do a land purchase/construction loan for 95-100% ?
Thank you.
Yes, depending on your circumstances there are many lenders who will lend 95% on the Lot/ Construction/ and end loan based on the completed value of the home.
Beachlife,
Are you building commercial or residential? What are the costs to build and what will be the completed value?
As Matt says, 95% is out there with plenty of lenders. However, you will be unlikely to find 100% (residential).
Thank you for the replies.
Here is the information.
Land purchase Cost: $900,000.00
This includes 1 + ac. of commercial property with permits for 12000 Sq Ft. broken up to 8 stores. Plus 1+ ac of residential property with proper permits for a 3 lot sub divsion.
All surveys have been completed. environmental study completed and approved.
Land clearing Cost: $50,000.00
Currently a building on site that needs to be removed.
Residential construction costs for 2 of the lots. homes will be around 2500 sq ft. each: $250,000.00 Value after completed: $650,000.00 Each.
Commercial construction costs will be paid from sale of house #2.
I would be able to repay 1/2 of the loan " $600,000.00 within 12 months. The remaining balance of the loan " $600,000.00" I would like to finance over 15 years.
About me: I do not currently own any real estate. I am a fully licensed and insured general contractor with my own business for the last 2 years. Well respected in my community. Pay all my bills on time every month. Have credit lines with all major credit card companies over $25,000.00 per card. My credit score is currently 742. I have had car loans befor that were settled befor the full loan term. I have never had any type of bad credit.
Now for the problem: I have limited funds for a down payment. I could if all else fails uptain 5% total out of pocket. Which would be $60,000.00 cash.
Could anyone tell me of any companies that would be willing to issue this loan.
I thank you in advance for your time.
I’ve heard of a lender who will do 100%, but only if the units are pre-sold.
What makes this tough is you probably have no real assets as for real estate…but maybe you can colleratize your business if your willing…Since your a GC, I bet your doing the work yourself…
I recommend going into a local bank or community bank and talking with the president or VP…if they say they can not fund the loan…ask them why… they will tell you…Then ask them if they can recommend someone else who they think can fund this deal…
go in prepared…take your financials, your company financials…maybe a letter from your account, recent copies of a credit report, proof you can do the job, etc…
tell them you like to arrange for them to handle the financing on the new homes your building and want to sell…you plan on sticking a nice sign in the ground stating this project is being fundede by them…they love that…
Also find out about the CRA grants…maybe you quailfiy…ask the bank…
for 100% financing on residental…depends on the appraisal but check out indymac, national city and suntrust…I actually did 100% closing cost rolled in with all 3 banks
For a 100% LTC construction, some lenders will accept the equity in the land, as well as pre-paid cost as part of the down payment
So, yes it is indeed possible, going full doc with a FICO of 660+
For a commercial project, it is not , as far as i know anyway
land you may not be able to get 100% on, but 100% for construction-- absolutely!