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Anyone offering a construction to perm loan for $437,000 with $10k down in SC?

We want to start building a larger home without waiting to sell our current one first. We don't want to move twice since the new home will be just a few houses down the street. The new house will cost $437,000 to build (including land) and we have about $10,000 in cash for the closing costs/down payment of the construction loan. The builder is requiring that we get a construction loan; he will not fund the build himself and let us purchase it after completion. I cannot get another builder - he owns the land I want and will not sell the land separately. We are in Spartanburg County, SC. Is there anything out there? by mslissap183 from Spartanburg, South Carolina. Dec 21st 2015 Reply


Eric Wilcox (ewilcox)
#211 ranked lender in Florida - 9 contributions

Hello, Yes my company does offer construction to perm financing in SC. Please feel free to email me at DLoewinger@ctcmortgage.net or call me at 561-983-6413.Thank you- Daren Loewinger nmls#108544CTC Mortgage Company, LLC.

Dec 21st 2015
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Michael Rappaport (mrappaport@unitedmortgage.com)
#56 ranked lender in South Carolina - 9 contributions

Great question. It's unlikely that you will find a conventional lender with such little assets available for the transaction, the reason is... Most lenders who offer construction loans follow Fannie Mae guidelines for 'Construction to Permanent' financing which is based off of 80% financing. I do know that HERITAGE TRUST FEDERAL CREDIT UNION offers this in South Carolina. They have a 20% down payment requirement.

Dec 21st 2015
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William J Acres (William_Acres)
#2 ranked lender in Arizona - 7,933 contributions

You don't necessarily need a construction to perm loan.. a construction loan will do, but this will require 20% down.. the only thing that might have a less down payment requirement is VA construction loan's, but you must have VA eligibility and good luck finding a lender doing those.. Sorry, but you need to understand that there is a tremendous amount of risk for a lender when it comes to construction loans.. During the mortgage crisis 8 years ago, construction loans represented the greatest loss for lenders.. in essence, the lender commits to lending you funds today based on a homes value 9 months to a year down the road.. many things can change in that time.. you could lose your job, get sick or injured, get transferred for work, have to move closer to an elderly parent, or like what happened in 2007, the real estate market crashes, and the home that cost $500K to build is now worth $300K.. For this very reason, regardless of who you go with, you will need 20% or more down payment.. 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. William J. Acres, Lender411's number ONE lender in Arizona. 480-287-5714 WilliamAcres.com NMLS# 226347

Dec 21st 2015
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Todd Glassman (Todd Glassman)
#1 ranked lender in South Carolina - 111 contributions

We offer construction to perm for VA and FHA loans in SC. John at our office is a constructional specialist . call him at 864-907-1089

Dec 22nd 2015
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Phil Dumouchel (PhilDu)
#32 ranked lender in South Carolina - 2,225 contributions

Pretty unlikely to find anything over 90% loan vs. the cost/appraisal - especially with a loan amount over $417,000 (except for VA and FHA, but FHA maximum loan amounts are well below the amount you want in all areas of SC). I could possibly help on that scenario depending on your overall qualifications. You could look into a home equity loan on your current home if you have enough equity. The maximum is usually 90% of the current appraised value for all mortgages including the new loan and Heritage Trust mentioned by someone else might be willing to do offer that, but probably not if you're planning to sell the home in 6 months or so). If you have the ability to borrow from your 401k or cash value life insurance those coudl be options to come up with additional funds - but make sure you have a pretty strong conditional approval from a lender before actually taking the funds out. Hope that helps - please contact me if I can help. pdumouchel@primelending.com just down the road from you in Charleston (and in Spartanburg visiting family several times a year...).

Dec 22nd 2015
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