NEW CONSTRUCTION FINANCING

HOW DO YOU FINANCE NEW CONSTRUCTION AND LAND FOR RESALE/ INVESTMENT. BEST METHOD WITH LESS THAN PERFECT CREDIT,600 MID SCORE???

These are usually done with construction loans that will lend on the future value of the real estate and roll in the cost of land acquisition and construction costs. This is on a primary residence or 2nd home.

If you are doing this as an investment property then it becomes essentially a spec house and the financing is more difficult UNLESS you own the land already or have $$ to put down.

SO 100% IS NOT POSSIBLE ON AN INVESTMENT DEAL OF LAND AND NEW CONSTRUCTION? WHAT WOULD THE DOWN BE? COULD IT BE ONE LOAN FOR LAND AND CONSTRUCTION? I APOLOGIZE FOR MY IGNORANCE ON THIS SUBJECT AS I HAVE NEVER RESEARCHED IT, SO ANY AND ALL INFORMATION IS APPRECIATED.

Crossgap,

Turn your CapsLock off. Typing in all Caps is equal to yelling. :smile

THANKS BUT I LIKE TO WRITE IN CAPS,AND NO IT’S REALLY NOT LIKE YELLING.WHEN ONE YELLS OTHERS CAN HEAR IT. BESIDES I FIND IT CLEARER AND EASIER TO READ. THANK YOU ANYWAY. :shocked

You may be able to get it accomplished with hard money if the land value is MUCH higher than the purchae price but the highest I have seen for an investor spec deal is 90%.

There are certain rules we all follow, just like traffic signals to prevent car wrecks, and not using all caps is one. CAPS is used to highlight words or “yell” at someone. Here some netiquette tips:

http://www.onlinenetiquette.com/courtesy1.html
http://www.quintcareers.com/online_networking-dos-donts.html
http://www.online.uwc.edu/Technology/onlEtiquette.asp

Spec financing with a 600 Mid-score is not going to happen at least with a national lender. There are non-prime lenders like bismarck funding, but they will not do 100% of construction costs unless you either own the lot outright or the current lender will subordinate the lien on the property. Also, it is extremely annoying to read your typing in all caps. If your having trouble reading what you are typing perhaps you should get some glasses.

Thank you both for the info. :biggrin

For residential construction loan, fico need to be 620 - 680. 80 to 90% LTC
For commercial construction it is different. Need 620. They go by 90% LTC or 80LTV. Whichever is less.

Now as far as hard money, you need an asset base lender, that do not look at fico.

thanks johnny

to rich_in_ct as to your threatening personal e mail,since you feel the need to be so petty i will abide and no longer use caps. for some reason i thought this was a real estate info site, not an english tutorial. whatever!? :bs :flush

[quote author=DeeinAustin link=topic=25103.msg116778#msg116778 date=1171250439]

Why is is not ok to write in all caps but it is ok to write in all lower case? Does that not mean you are lazy and submissive?

Fight Fight Fight!

Everytime I click on the “new” button, I love reading helpful responses that allow everyone to learn.

This banter is like a hockey game…no one goes to watch the actual sport, but to watch the fights. I want to see some bloody noses if this is what I clicked the “new” button for!

Anyone want a beer so we can sit and enjoy the fight? :beer

Here, here :biggrin