I work with a Custom Home Builder and we are wanting to get into this Spec Home Market. I put up the money and he builds it and we split the profit. My question, I have about 3 years credit history, 720 Credit Score and make around $500.00 a week, what type of loan would apply to this situation, could I find financing? Homes are usually sold in my area before they are completed and we see a gold mine.
What about construction loans? with your credit you could do a construction loan that would cover most if not all the costs.
one thing…any other income in your household?
No, not really. I’m a young man living with my mom and sister who do not make that much either. Trying to build a future. What is needed to qualify for a construction loan? Also, mother has alot of equity in her home but I don’t know how that would help, i don’t think she would be comfy risking it.
any other debts?
Yes, auto loan for 20,000 and school loan for 5000
so let me break this down…you make 2K a month approximately…what is your monthly payments?
auto…450.00
ins…200.00
school…60.00
cc…150.00
Indy Mac has a few progrmas that might help you. They have a program where they will finance any builder you have up tp 4 properties at one time, 1.5 million per property and you get a cut of that. But that would be last ditch resort. They also have numerous construction programs. You can call them at 1-800-HCL-Loan, and for the record I do not work at Indy Mac I just have this number handy. Hope that helps
Are they competitive with banks/mortgage companies? Last Ditch Effort? Does that mean higher rate?
No i’m saying last ditch effort with that program because if you are fronting the cash to build then you have a much greater stake in it then if a lender gave the builder the money. IndyMac has some great programs for construction loans. If you are shopping around they are good to take a look at.
What state are the properties located in? Can you document $2000/mo earnings for 2 years?