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      Current Loan Programs

Renovation Loans in Santa Barbara
rates as low as 3.5% 

Lot Loans for Vacant Land in San Diego
rates as low as 4.5% 

• Single Close Home Construction Loan
• Residential Lot Loan
• FHA 203K Rehabilitation Loan
• Conventional Rehabilitation  Loan
• Residential Cash-Out Refinance
• Home Equity Line of Credit
• Private Investor Financing
   

The Single Close Home Construction Loan

For the past 20 years financing the construction of your home meant finding two and in some cases, three loans. Today, the most cost-effective and efficient form of financing can often include all three phases of home construction; lot or home acquisition, the actual construction, renovation and rebuilding of your home and a permanent mortgage for the next 15 to 30 years. A Single Close or Single Fund loan can save borrowers tens of thousands of dollars. This type of loan also means you get it all done with just one process, property appraisal, loan approval and one set of fees.

Here is the Single Close Loan- A Construction/Permanent Loan is a single closing residential mortgage that allows disbursements for construction of the property through the initial phase of the loan and upon completion of the property the loan reverts to amortizing over the remainder of the term. Monthly payments will be interest-only on the outstanding balance during the construction phase. The maximum allowable term of construction phase is twenty four months. Upon completion of construction the mortgage will be modified to fully amortizing loan for the remaining term annual interest rate and payment adjustments after a fixed period of 1, 2, 3, 5, 7, or 10 years. Most loans adjust annually based on the U.S. Treasury Index or LIBOR Index.

MAXIMUM LOAN AMOUNTS and CREDIT SCORE REQUIREMENTS:

For properties owned more than 12 months the maximum loan amount is based on the future value of the home, also know as t he “As-Completed Value”.

For properties owned less than 12 months the maximum loan amount will be based on the existing value, post-demolition if any, plus all the costs of construction.

Loan Amount      Maximum            Minimum            States               Program             Reference
Amount             % of Value         Credit Score       Available Type    
- - - - - - -            - - - - - - -          - - - - - - - -         - - - - - - - -          - - - - - - -          - - - - - - -
$500k - $1.5MM  75% - Standard  680                   All except TX      Single Close        CTP 1-10
$500k - $1.5MM  80% - Expanded 720                   All except TX      Single Close        CTP 1-10

$1.5 MM - $2.0MM           70% - Standard  700       All except TX      Single Close        CTP 1-10
$1.5 MM - $2.0MM           75% - Expanded 720       All except TX      Single Close        CTP 1-10

$2.0 MM - $2.5MM           65% - Standard  720       All except TX      Single Close        CTP 1-10
$2.0 MM - $2.5MM           70% - Expanded 740       All except TX      Single Close        CTP 1-10

$2.5 MM - $5.0MM           60% - standard   720       All except TX      Single Close        CTP 1-10
$2.5 MM - $5.0MM           65% - Expanded 740       All except TX      Single Close        CTP 1-10

PROJECT TYPES:
New Construction on Vacant Land; Urban, Suburban and semi-rural. Agricultural zoned land may be permitted by exception with supporting comparable data.

Major Remodels and renovation, additions, complete or partial demolition with rebuild

SUBORDINATE FINANCING:
Not standard, allowable only by exception

ELIGIBLE BORROWERS:
U.S. Citizens, Permanent Resident’s and Restricted VISA Holders

ELIGIBLE PROPERTIES:
Single Family Residences (SFR), Second Homes, Attached Duplexes

Standard maximum of 10 acres, however parcels not exceeding 20 acres may be considered if typical for the area and value/marketability is supported with appraisal comparables of similar acreage. Property must be residential in nature.

INELIGIBLE PROERPTIES:
No condominiums, Log Homes, Dome Homes, Earthen Homes, Manufactured Homes, Time Shares, Condotels or similarly unique properties

INTEREST RESERVES:
Borrowers have the option to include interest accrued during the construction phase into a larger loan amount, thereby eliminating the need to make any monthly payments from their savings during construction.

FINANCE CONTINGENCY:
Borrowers have the options to add a line item to their construction budget that will provide for unallocated funds to be used during the construction phase should they experience cost overruns due to unforeseen increases in the cost of materials or labor, or simply chose minor deviations from the initial building plans or schedule of materials.

BORROWER RESERVE REQUIREMENTS:
Borrowers are required to demonstrate the following amount of liquidity at the time the construction loan funds; this is referred to as Post-Close Liquidity. These are borrower funds and completely unrestricted.

OWNER BUILDER PROJECTS:
Permitted on a case-by-case basis, contact one of our Consultants to discuss the full details

MID-CONSTRUCTION PROJECTS:
Construction project that are already underway at the point we assist in the search for financing are done strictly by exception and should be discussed in advance with one of our Consultants.

CREDIT RESTRICTIONS:
A borrower with a history of moderate to slow payment of obligations must have strong offsetting characteristics to be considered favorably.

The borrower must provide a written explanation for all material adverse credit information.
No exceptions to either minimum required FICO Score or loan to value will be permitted.

Severe Derogatory Credit Policy:

The following are considered severe derogatory credit and require manual underwriting; Bankruptcy,  Foreclosure, Deed in Lieu of Foreclosure, Short Sale or Short Payoff – at least 1 X 30 day delinquency in 12 months preceding loan being paid in full.

For borrowers with these credit profiles, a period of 7 years must have passed since occurrence and the re-establishment of good credit before financing a new transaction.

Exceptions to the Severe Derogatory Credit Policy:

Short Sale or Short Payoff:  If the loan that was paid off was current and there had been no delinquencies on that loan during the past 12 months before being paid off, 4 years (instead of 7 years) must have passed with the re-establishment of acceptable credit.

Bankruptcies, Foreclosure or Deed in Lieu: If extenuating circumstances existed (see definition below) that resulted in borrower’s bankruptcy, foreclosure, or deed in Lieu, then the following apply:

Chapter 7 Bankruptcy: 5 years must have passed with re-establishment of acceptable credit.
Chapter 13 Bankruptcy: 5 years must have passed with re-establishment of acceptable credit.
Foreclosure or Deed in Lieu of Foreclosure: 4 years must have passed with re-establishment of acceptable credit.

Residential Lot Loan
Loan amounts to $1,000,000 in all states but Texas

FHA 203K Rehabilitation Loan
Loan amounts vary by states, call our Consultants to discuss the full details

Conventional Rehabilitation Loan
Loan amounts to $729,500 in all states but Texas, call our Consultants to discuss the full details

Residential Cash-Out Refinance

Home Equity Line of Credit
Loan amounts to $3,000,000; call our Consultants to discuss the full details

Private Investor Financing
All program parameters are custom designed to fit the individual client and their project