Purchasing new construction is exciting! We offer both Conventional and Jumbo Construction Perm loans. This is a one-time close loan with up to 10 draws. The details of this loan program and as follows:
- 15- or 30-year terms with 6, 9 or 12 additional months for construction on the Conventional Construction
- 15- or 30-year terms with 12, 18 or 24 months for construction on the Jumbo Construction
- (loan < $647,200) or as a Jumbo One Time close
- On the conventional construction the customer needs a 700 score to get 70% max and a 720+ score to get 89.99%
- On the Jumbo Construction the customer needs a minimum 720+ score. max 70% loan to $3M, 80% to max $1.5M and 85% max if $1M or less
- Need Contractor & Project approval before loan is approved, in addition to approving our buyer
- Initial draw may be at closing. 10 business day waiting period after closing for any additional draws
- Any cash down payment you bring to closing will be used to acquire or pay off the lot or may be disbursed to the contractor as a draw at closing. Any excess down payment funds not needed at closing, will be held in a Loan in Process Account, and disbursed as work is completed. When these funds are depleted, the disbursements will be drawn on the principal of the loan.
- Up to 10 draws built into loan based on loan amount. Additional fees apply to each additional draw.
- Primary residence and Secondary Homes only (NO Investment Properties)
- Property types: 1 Unit/PUD/Site condo/modular (NO Manufactured Homes, NO Multi-Family, NO log homes, and NO lots > 10 acres)
- Must receive Approve/Eligible per Fannie Mae automated underwriting
- If you own the land free and clear, you can leverage a percentage of the land for a down payment
- Must be builder/contractor built… customers can NOT build their own home
- Tear down and re-builds are available if 12+ month construction
- NO – non-occupant co-borrowers allowed
- Interest Only payment during the construction process based on the amount of money advanced to the builder
- Construction interest rate is .75% higher than the permanent locked interest rate
- No Sweat Equity allowed
- Taxes and insurance escrows are collected at the time of construction closing
If you are interested in being pre-qualified for a Construction loan or any of the other loan type or loan program, please contact us.
For more information, please call Raleigh Mortgage Group today at 919-866-0212 to speak with an experienced and knowledgeable loan officer who can help you determine if this loan program is right for you.