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Q.
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What are the types of acceptable
properties? |
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A.
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1)Single Family, owner occupied,
detached
2)Platted and recorded s/d. Rural land considered.
3)Second Homes |
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Q.
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What properties are NOT acceptable properties? |
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A.
|
1) Log Homes are not allowed.
2) Housing |
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|
Q.
|
What is the Maximum LTV? |
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A.
|
95% |
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|
Q.
|
What if I have owned my lot for less than
a year? |
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A.
|
If the lot is owned for less than a year,
you will use the sale price of the lot. |
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Q.
|
What if I have owned it longer than a year? |
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A.
|
If the lot is owned for MORE than a year,
you will use the appraised value of the lot. |
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|
Q.
|
Other than the normal loan charges, are there
any addition charges? |
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A.
|
Yes, there are 2 additional fees:
1) Construction Fee: Covers the cost of five progress inspections
and one final inspection
2) Construction Admin Fee: based on the full loan amount. |
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Q.
|
What is the allowable construction phase? |
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A.
|
The construction phase depends on the permanent
rate loan product chosen. The allowable phases are 4, 6, 9,
or 11 months. |
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Q.
|
Are there any special builder requirements? |
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A.
|
Yes, the One-time-close program requirs the
borrower to hire a licensed builder approved by the CPD prior
to loan approval. Owner/Builder projects are allowed under certain
circumstances. |
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|
| Q. |
What is the construction phase interest rate? |
| A. |
Prime +1% floating
You will make interest only payments during the construction
phase based on the loan funds outstanding. |
| |
|
| Q. |
When will the borrower be able to lock the
permanent rate? |
| A. |
Rate Protection:
Lock Periods:
Fixed Rate: 30 days prior to closing
Adjustable Rate: 45 days prior to closing |
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