Stated Income
Construction Loans Are Back, With Some Adjustments.
We have in the past few
weeks written on the impact of the recent upheaval on the stated
income mortgages in general and stated income construction loans in
particular, that replaced our original page on stated income
construction loans.
After a good few weeks of almost total uncertainty and continuous
revisions of underwriting guidelines, it seems that things are
settling down and investors are a little more certain about the
sustainability of the new guidelines.
Some investors who had raised rates to sky high levels are now
offering better rates while sticking with lower loan to values,
while others who offered combination first and seconded trust deed
construction loans up to 95% LTV on loan amounts of up to two
million dollars have done away with the seconded trust deed
portions. Most stated income loan matrixes now call for higher FICO
Scores and will not accept wage earner stated income borrowers.
What’s more the cash reserve requirements have been increased from
around 6 months of PITI to 12 months and in some instances as high
as 18 months for higher loan amounts.
Where does all of this leave the stated income construction loan
borrower? As far as we can tell in a better situation! And why do we
hold such an unusual position? Because the way things were in the
crazy market that were in simply could not be sustained.
Today’s construction loan borrower must realize that chances are
pretty high that by the time their project is over, real estate
values may very well have dropped, and as such the new guidelines
will ensure that a project is funded only if it is a solid one.
We
do still offer what we believe to be the most competitive rates for
construction loans, and invite you to call us for details.
More:
Stated Income Loans Are Not Performing and The
Blame Game is On…
And now most every major institution
is blaming the small brokers for their woes!
Upheaval in the Mortgage Industry Effects
Stated Income Construction Loans
The
recent developments in the mortgage industry sparked by the
Sub-Prime mess effect stated income and no income qualifying loans.
The Original Stated Income Construction Loans
Page
This is the original page which was written back in 1999
We Now Offer Construction Loans in Texas
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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More Information
ABOUT |
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Choosing
the right contractor and sub
contractors is probably the most
important task in your
construction loan application process.
Contractors and Sub Contractors.
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Articles by Construction Loan Center's Adviser
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Custom Builder Spec
Financing.
This
program has been designed for contractors and builders who wish to
fund the construction of up to four single family homes.
Individuals,
Partnerships, Corporations or Limited Liability Companies can apply
for loan amounts up to $1,500,000 to finance up to 85% of the cost
of construction.
Rates are as low
as Prime plus 1.25 and interest reserves can be set up for as long
as 18 months.
For details go to our
spec
construction loans page.
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