Construction to Permanent loans are the easy and cost efficient
means to finance a Big Bear construction project. It eliminates
to need to get two loans; to pay closing costs twice and it reduces
the paperwork, time and the hassle involved. The construction
period is normally 6-12 months. During that period the payments
are made out of an interest reserve account that is built into
the construction loan. Depending on how quickly you use the construction
funds; there may be sufficient funds within the construction loan
to pay all of the payments due during the construction period.
Payments due during the construction period are interest only
payments and the interest charge is based only on the funds used.
After construction of your big bear home, the loan payments convert
to the standard principle and interest scenario.
This is a loan for the Big Bear homeowner who is looking to make
major improvements to a primary residence. It is a second mortgage
that uses the present value of the home and adds the value of
the planned improvement. Access to the construction funds are
available immediately upon loan closing.
A bridge loan is an equity loan against the current residence
of a homeowner that wishes to use that equity as the down payment
for a Construction Loan. During the construction period, there
are no payments due on the Bridge loan. The homeowner is able
to live in his present home while building the new one. The Bridge
loan becomes due when the new home is finished and the existing
home is sold.
Spec loans are provided to builders who are constructing a home
without a guaranteed sale upon completion of the project. The
financing is generally up to 90% of the total project cost and
up to 80% of the LTV. We can fund loan up to $1.5 million. Lot
draws are up to 60% of the land value. The general requirements
are credit scores of 680 (mid score) 10% post-closing liquidity
of the total loan amount. The minimum Gross Profit Margin is 15%.
Builders are required to have 5+ years of experience in building/marketing
of residential properties
