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10% down for construction, 20% down for perm?

I'm looking for a construction loan with a total construction cost of about $950k and I can do between 10% to 13% down now. In 8 months when construction is complete I can do an additional 7% to 10% for a total of 20% for the perminant. Anyone out there offering any kind of construction to loan to perm like this these days? My credit is above 740 and I have documented earnings at 20k a month. by jac50266958 from West Des Moines, Iowa. Aug 2nd 2013 Reply


William J Acres (William_Acres)
#73 ranked lender in Arizona - 8,726 contributions

Very few lenders are offering construction loans... it's a loan product that got hit very hard when the economy went down.. folks would agree to purchase a new construction home and 9 months later when the home was built, it was worth $100K less.. they bailed, the bank foreclosed and lost tons of money.. however they are making a comeback.. I'm pretty sure you wont find any lender who will to a construction to permanent, but there are a few lenders out there offering construction loans.. 10% down though might be tough.. check with your builder, or check with your agent.. both should have someone they can refer you to.. .. I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. 480-287-5714 WilliamAcres.com

Aug 2nd 2013
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Please call me to discuss.I do have somebody who gives out constructionloans in the area.Thanks,Jinggy B. Cigrand, MBAMidwest Finance Corporation(319)826-3633

Aug 2nd 2013
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do you currently own the lot?if so, you can base the max loan amount on the appraised value, if not , most banks will structure the loans as follows:based Acquisiton cost : and up to 90% Loan to Value ( you have to call around to some of the local banks which hae portfolios)or based on an apprasied value:they may request a 20% down on the lot and base the max. loan amount on the appraised value.example:lot cost = 200Kdownpayment requirement = 20Kcost to construct = 750Kso total cost = 950Kthe estimated appraised value = 1, 050,000.00 so max loan might be at 80% of value = 840Kthe max loan will be based of the appraisal ( which is completd prior to settlement based on the lot & construction contracts and detailed scope pf work provided by the builder)we dont provide loans in your area , but i am sure if you call some local community banks , you will find several that have contruction loans.

Aug 2nd 2013
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No, I don't own the lot, the builder does and the $950 includes the price to build plus the lot, all in one purchase agreement.

Aug 2nd 2013
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Ernesto Marez (Ernesto)
#68 ranked lender in Maryland - 137 contributions

the builder should have a list of banks they had used in the area, or go online and search for local banks or credit unions that offer construction loans.they will either base it off the acquisition or appraised vallue depending on their portfolio.

Aug 2nd 2013
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Elden Lewis (elewis_409_299)
#42 ranked lender in Indiana - 223 contributions

Ditto what William said, CP loans are hard to come by especially million dollar loans with 10% down. I work with a bank in Indianapolis and we have an avenue to do these loans however, in the central Indiana market only. Usually in any large market there is one or two "banks" that will aggressively pursue construction loans and then payoff the construction loan with the end loan. You just to find that bank. Talk to Realtors and and builders in your area they should know who these lenders/Banks are.

Aug 2nd 2013
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Mary Chris Gallo (MaryChrisGallo)
#48 ranked lender in Minnesota - 116 contributions

That loan structure if quite common here in the Twin Cities; but you're going to have to do a lot of searching to find the lender whose niche this is in your area.

Aug 2nd 2013
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Please call me at your earliest convenience: 515.224.0100. My name is Nick, I am a licensed mortgage broker in West Des Moines, and I have the lowest rates on the market today! I have construction financing as well and the permanent jumbo financing that you will need later as well!

Aug 2nd 2013
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Pete Bass (PeteBass)
#30 ranked lender in Connecticut - 476 contributions

Check with your local community bank- they can portfolio construction loans. If you have good credit, earnings and assets, should be something they can puton their books-Hope this helps,Pete

Aug 3rd 2013
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