Credit and Construction Loans

Most traditional construction loans require a 680 credit score or better for qualification.  Some niche lenders offer loans on scores less than 680. These loans typically charge higher interest rates and require substantial equity, or money down.  Making a tough situation even worse, loans with less than 680 credit scores loans require 15% of total [...]

Construction Loans and How They Work

Construction to Perm (CTP) Mortgages, One-Time Close Construction to perm loans are essentially 3 loans in one, land loan, construction loan and permanent loan in one transaction. These loans have obvious advantages in that you don’t have to close three times saving you time and closing costs. At closing you purchase your land and extended [...]

Construction Loan Insurance Requirements

Discover Building recommends owner builders consult with insurance professionals in detail to make certain they are properly covered before construction begins. It is extremely important to check all local and state laws concerning insurance requirements and to ensure compliance. When searching for insurance the owner builder may find it difficult to locate insurers to cover [...]

Stated Income Construction Loans and Subprime

A recent article in the Sacramento Business Journal sums up the general consensus in the mortgage business about how risky loans will be handled in the future. While the article focuses on WAMU, the article could be about any publicly traded bank in the country and still hold true. “The Seattle-based company lost $113 million [...]