Land Loans for
Residential Construction
Our Lot loan
program is one of our more popular products.
These
land loans are designed as purchase money loans for those
borrowers
who aren’t ready to begin construction at this time, and as such
are not ready to obtain a construction loan, but will be ready in
the near future.
The
lot must be normal for the area and at least one utility must be
available from the street. (Septic tanks, propane tanks, are
acceptable if these features are normal for the neighborhood.)
Just
like in
construction loans we can fund this loan both as a Full
or Alternate Doc and as a Reduced Doc (Stated income) loan.
For Fully Documented
Loans we offer
80% LTV/CLTV to a maximum loan amount of $500,000 for credit
scores of 620, with 6 months PIT reserves and a maximum back-end
debt ratio of 42%.
90% LTV/CLTV to a maximum loan amount of $300,000, for credit
scores of 700, with 24 months PIT reserves and a maximum back-end
ratio of 42%.
85% LTV/CLTV to a maximum loan amount of $300,000, for credit
scores of 700, with 24 months PIT reserves and a maximum back-end
debt ratio of 42%.
For Reduced
Documentation (stated Income, verified assets) loans we offer:
75% LTV/CLTV to a maximum loan amount of $300,000, for credit
scores of 680, with 6 months PIT reserves.
70% LTV/CLTV to a maximum loan amount of $500,000 for credit
scores of 680+/- with 6 months PIT reserves and maximum back-end
debt ratio of 42%.
85% LTV/CLTV to a maximum loan amount of $300,000. for credit
scores of 700+ with 24 months PIT reserves and a maximum back-end
debt ratio of 42%
We offer
two repayment options;
A 30/2 fixed rate laon. This is amortized over 30 years and
all due and payable in two years.
A 30/5
adjustable rate loan. This program is amortized over 30
years and all due and payable in five years. We offer two
index plans for the 30/5.
A 12 MAT product with a start rate that is fixed for the first 3
months and then adjusts monthly; and a 6 month LIBOR with a start
rate that is fixed for the first 6 months and then adjusts every 6
months thereafter.
We will lend
on parcels up to 50 acres at the following LTVs;
0-20- The above guidelines apply.
20.01 – 30
–75% LTV maximum
30.01 – 40-
70% LTV maximum
40.01 – 50 –
65% LTV maximum
We do not currently offer a refinance option on lot loans so pick
the term that best fits your needs. In fact most lenders do not
offer a refinance option and it goes without saying that if you
don’t choose the loan carefully you will end up having to
refinance using a very expensive loan or rush into a construction
loan.
Questions?
Call us Toll Free
or Send an Email,
with any questions or concerns that you may have. Visit Our
State Specific Contact Page,
where you can find our phone numbers to call us, contact us by email
or complete our short, secure application form.
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