Q:        What is the minimum credit score you accept?

A:       We generally need a 680 credit score for credit approval on our construction loans.

Q:        Do you offer 100% financing?

A:       Yes!  On Primary homes, we may be able to finance 100% of cost or 90% of appraised value, whichever is less. This is subject to borrower qualification, and may require a PMI premium be paid dependent on qualification, risk level, and property type.

Q:        Do you offer stated income, stated asset loans?

A:       No.  The documentation guidelines, however, are generally less stringent than Fannie Mae and Freddie Mac requirements. The construction loan would require some type of documentation to support income and assets stated on the application. Please see our “Loan Submission Checklist” under the “Forms” link for more details.

Q:        What range of total debt to income ratios is acceptable?

A:       Maximum DTI is 45% depending on other qualification factors, i.e. credit, LTV,

          assets, etc.

Q:        Do you lend on Investment Homes?

A:       Yes and No.  If a home builder is looking for a line of credit for pure production of spec/investment houses, then No.  If an individual is going through a licensed builder to build an investment home, then yes.  The individual would need to qualify for the mortgage (as an investment property), and if the home did not sell prior to the 12 month construction period ending, then that individual would have to take out a permanent mortgage to pay off the construction loan.

Q:        Why do you need the permanent mortgage findings now? Can it be a sub prime approval?

A:       We need the verifiable permanent mortgage findings for the permanent loan prior to construction approval because this shows the ability of the borrower to take out a permanent mortgage when the construction loan comes due.  We would like to have an Approve/Eligible on conforming loans, or Approved findings from a verifiable lender on a jumbo loan.  We can not accept any sub-prime approvals.

Q:        Do you offer construction loans on investment properties?

A:       Absolutely!  Your borrower must qualify holding the debt on the investment along with their own primary housing expenses.

Q:        As a broker, do I need to be approved by you in order to submit a loan?

A:       No!  There is no broker approval required.

Q:        Do I get paid when the construction loan closes or do I have to wait for the permanent loan to close?

A:       You get paid a broker fee when the construction loan closes.  Plus, you retain your borrower and the permanent mortgage, which will allow you to receive your fees and YSP’s later at the close of the permanent mortgage.

Q:        How do I get started?!

A:       Just click on the “Getting Started” link, “Forms” link, or “Contact Info” page for more information.

Q:        Do you offer lot loans?

A:      Yes, however, our lot loans are not long term lot loans.  We offer short term lot loans to facilitate construction financing within 12 months.  For example, your borrower plans to build on a lot he has found, but needs to close on the lot prior to completion of the plans and specs by his builder.  We could close on the lot loan, and then finance the construction when the plans are completed.