Construction to Perm Loans (CP Loans)
Underwritten In-House
- Fixed Rate (Locked at Modification at Market Rate) OR Lock in at 7.0% at closing with a one-time float down option at modification.
- 12 months interest only.
- $150,000 minimum construction cost.
- 1.00% construction admin fee on build cost.
- Specific Template - Template set with correct rates provided.
- Qualifying Rate 7.500%(Primary/Second Home)-Subject to change based on current market
- Construction Rate is 7.5% - Subject to change based on current market
- Product requires modification agreement to be signed at the time of home completion.
- Conventional, VA and Jumbo Loans offered -- Inquire about specific guidelines.
- We would follow the Single Close guidelines for CP loans. Click Here for guidance.
- The Branch (LO) has to get the builder and project accepted by our CP/Reno Desk.
- Contract to include 1 year warranty and if local jurisdiction does not provide a building permit and certificate of occupancy, builder to provide a 10 year home warranty (paid by builder but can be included in budget).
- 5% added contingency on all loans.
- Escrow account is established at the time of modification (if applicable).
Important Builder Requirements:
- Complete questionnaire (All fields)
- State and/or Local License
- Liability Insurance (Minimum Coverage $1,000,000)
- Good Standing with Secretary of State
- Minimum of 5 yrs in business and a minimum of 20 homes completed.
- Good Credit History
- Builder must have new construction experience
- MAXIMUM OF 3 LOANS PER APPROVED BUILDER/CONTRACTOR
- No Family Relationships allowed
- No Owner/Builder allowed
VA Construction to Perm Loans
Important Requirements:
- Minimum FICO: 700
- Max DTI: 43%
- Max LTV 100%
- Minimum Loan Amount $150,000
- Owner Occupied Single Family Homes
- 5% added contingency on all loans
