pre-construction loans

I was checking a lot for $150,000.00. To built a house will cost me about $300,000.00. The asking price after construction will be around $600k-$700k.
Know, the question is what are my options if I want to do the deal.
My fico middle score is 680. stated income. bkrty in 2000. $100k in cash. 2 invest. properties which are in contract to sell. Can anybody help me out as to what kind of loans can i get that will be most beneficial. ???

If it’s a personal residence you can get a 95% construction-to-perm loan no problem.

yes, going stated. I have sent you a private email. We need to get your pre-approved through the application process as soon as possible…

Your loan will need to be determined on how many months it will take your general contractor/ builder to complete. Generally, loan terms consist of 6-9 months… longer terms exist for bigger homes. A good builder can put up a home in good weather in a few months.

Make sure you have your architect in place.

Is this going to be an owner occupied property?

Are you the builder? Will you be hiring a builder?

You can get it done with 5% down. I have a program that gives contractors a 10% advance on their money needed to start building. You pick your own contractors and get them approved through the contruction perm lender. I don’t think you will have a problem finding this loan.

Would I get the 95% on the constructed house or on both the house and the lot?? What about if it is for investment ???
Can i be able to refinance the loan to a 30yr?

Yes. lot and construction…Investment is going to limit you to 80% with conventional lenders.


If you don’t mind sending me a private email or posting here- who does that investment property construction loan? I have not been able to find that product.


IndyMac…Spec loan program. You need to be a builder/general contractor or have someone on your team who is. 680 FICO. Up to 80% LTC (Loan-to-cost) and 90% LTV.




Not with that lender…

Indymac, the obvious marketing giant towards construction… what a nightmare.

I would stay away from Indymac… as I have been obtaining quite a few fallout loans from very irate customers who originally went to Indymac with another loan officer who knew very little about closing a construction deal. A loan officer gets 5% referral fee from Indy and then never sees the file again. It is assigned to some newbie loan officer within the Indy framework who has barely had any time in the business and then is butchered to death until they decide they can’t do the deal…

Make sure you are doing business with someone who has closed construction loans in the past… not just someone who knows of Indymac… as Indymac is a major player in steering loan officers construction loans out of there hands in exchange for a 5% referral fee… which in time turns into a major disaster not only because the original loan officer will loose touch with the entire file/process, but also… in my opinion, Indymac has lost it’s personal touch… one that is needed especially in construction lending…

IndyMac… great marketing system… but not my choice for construction lending…

why do you need a biulder to get your loan approved?