If you are building a home that is common for your area, a home where there are many similar homes that have sold in the last year, in the same area, for what it will cost to build your home or more, you can stop reading. On the other hand, if you are building an...Read More

So how do you appraise a home that isn’t built yet? This is a question I get quite often when I speak to potential clients about construction loans. The answer is, plans and specs. The appraiser will be given a copy of the legal description for your land, so they will know where you’re building. But instead of being...Read More

I was inspired to write this blog by a recent question on this site, “What is your role in the loan process”. I’m the loan officer, the middleman, plan and simple. On one side of my business I have my clients that need money to buy, build or refinance their home. On the other side...Read More

First understand that there are two underwriters, the automated one and the human one. All conventional and government loan files are first submitted through a software package that we generically refer to as an Automated Underwriting System or AUS for short. The two most common systems are Fannie Mae’s Loan Prospector and Freddie Mac’s Desktop...Read More

Recently announced, the standard Fannie/Freddie loan limit for 2019 will be $484,350 for a single family home according to the The Housing Wire, https://www.housingwire.com/articles/47489-fannie-freddie-conforming-loan-limits-increase-in-nearly-every-part-of-the-us. In some “high cost’ areas the single family limit will raise to as much as $726,525. Does this mean that the FHA/VA limits will go up as well? Stay tuned! For more information give me...Read More

Many of my referrals come from factory built home dealer/builders. Modular and Manufactured homes are great for the FHA/VA construction loan program. They save on construction costs and time (allowing you to save on interest during construction). They are built with quality materials, in a controlled climate, to very tight specs. There are lots of...Read More

There use to be a time, many years ago, that if you wanted to borrow money to build a home you had to get a construction loan. Once the home was completed you had to refinance that construction loan into your end or permanent financing. You paid 2 sets of fees, fill out 2 applications,...Read More

…but you can’t build ANY home. Pole barn homes, container homes, mixed use, geodesic domes, Quonset hut homes, 2-4 units or more, I’ve had calls about all kinds of building types. Unfortunately you can’t use a standard 1x Close Construction to Perm loan for any of these. The program exists to help build homes that...Read More

Construction lending is the “deep end” of the mortgage pool. Any loan officer should be able refinance your current loan or get you a simple purchase mortgage, but getting a construction loan is much more complex. The more construction loan experience your loan officer has, the quicker you can close and start building. If your...Read More

If you already own the land you plan to build on you may not have to make a cash down payment. In fact you may be able to roll in any closing costs and/or pre-paids. Land equity comes in three forms; 1) You have your land gifted to you. We will need sale comps of...Read More