It is saddening how many FHA buyers I have that cannot put in an offer, simply because the seller does not want them as buyers. They want conventional or cash, who can absorb a low appraisal, and have no problems paying above market value. Before I ramble on about this, the true spirit and nature of this article is to discuss a brand NEW product that we offer right NOW, that will get more smart buyers into homes, hopefully at a better value, then getting into a bidding war with other buyers, driving up prices, which become inflated.
Enter The Construction LOAN
This is an FHA and VA product that has been offered for years, however many, if not all lenders refuse to touch it. Until TODAY. The loan works like any other VA or FHA Loan. Zero down for VA and 3.5% down payment for FHA.
Here is an example of how exactly this would work.
Step #1 ——-FIND a lot you would like to build on. Seller makes a contract with you for land at $150,000.
Step #2 ——Have your General Contractor put together plans and specs to put together price of construction loan, which in this case is $240,000
Step #3—–Your base loan amount is $390,000, as this includes the $240,000 Construction Cost plus $150,000 lot cost
Step #4 —-Close your LOAN! You will be required to put dont 3.5% for FHA, or ZERO DOWN FOR VA.
Here are some of the program highlights and guidelines for you to review initially
- Down to 580 Credit Score
- 10-30 year terms available
- Modular, Condo, Townhomes, Manufactured, and Single Family Residences okay
- Owner Occupied Only
- Loan Amount limits by County for FHA and VA
For any questions on how to get approved for this loan, and how to take the proper steps, call Brian Quigley at 720-524-3215 or email him at loans@beaconlending.com
