Construction loans are based on the independent ratios; Loan to Cost and Loan to Value, and very often it is the loan to value that gets in the way limits the loan amount that can be made on a particular project.
Some programs limit the LTC to the same range as it is for the LTV of a given loan amount, and yet others will allow a margin of 5 to 10% over and above the LTV for the given loan amount range.One of our investors has recently come revised it’s guidelines and will now make construction loans for up to 95% loan to cost ratio within the entire range of loan to values for the given loan amounts.This new and unusual development will make it possible to obtain a construction loan with much smaller down payments.
Not to be out done an other investor introduced a program the is completely independent of loan to cost unless if the transaction is a combined, purchase and construction loan, in which case the loan to cost is an in significant 5% of the cost of the lot!
The combination of these two powerful construction loans brings the possibility of building your own home a lot closer to home!
Tuesday, October 11, 2005
New Guidelines Make Old Program Unbeatable
