Construction Loan is pleased to announce that effective Friday, August 31, 2018, we will be offering Jumbo One-Close Construction loan products. These products allow for payment of interest-only during construction with the note to be modified upon completion of construction to a fully amortized principal and interest payment. The construction terms include 12, 18, and 24 months. Soft costs (architectural, engineering and permit fees) may be financed, closing costs may not. Only full third party builder contracts are accepted. Teardowns and major renovations are eligible.

PRODUCTS OFFERED – Product Name Term Construction/Interest Only Period Loan Term for Registration Jumbo One-Close Construction 30-Year Fixed 12 month 30 years 12 months 372 Jumbo One-Close Construction 30-Year Fixed 18 month 30 years 18 months 378 Jumbo One-Close Construction 30-Year Fixed 24 month 30 years 24 months 384

PRIMARY RESIDENCE – CONSTRUCTION/CONSTRUCTION-PERM Property Type Maximum LTV Maximum CLTV Minimum Credit Score Maximum Loan Amount 1-Unit PUD Site Condo 85% Subordinate Financing Not Allowed 760 $1,000,000 80% 720 $1,500,000 70% 720 $3,000,000

SECOND HOME – CONSTRUCTION/CONSTRUCTION-PERM Property Type Maximum LTV Maximum CLTV Minimum Credit Score Maximum Loan Amount 1-Unit PUD Site Condo 75% Subordinate Financing Not Allowed 720 $1,000,000 70% 720 $1,500,000 65% 720 $2,000,000 50% 720 $2,500,000

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VA Loan
Appraisal Note: The appraised value determined by the Appraiser must be the “as completed” appraised value of the property after completion of construction

Lender must draw/prepare all Correspondent Non-Delegated closing packages • The Borrower cannot perform any of the work (“Self-Help” is not permitted) • Singlewide Manufactured housing is not permitted

Lender qualifies borrowers on 29 years on a 30 Yr. Fixed term and on 14 years on a 15 Yr. Fixed term

Lender requires a Final Inspection performed on the VA Form 26-1839 accompanied by interior and exterior pictures of the subject property •

Lender does not permit the use of a DPA to be used in conjunction with One Time Close Programs •Lender does not permit change orders.

Lender does not permit the borrower to pay construction interest, this must be charged directly to the Builder/Retailer. •

Lender does not permit the installation or construction of a pool.

If the utilities are off at the time of the inspection, the Appraiser must ask to have them turned on and complete all requirements under Mechanical Components. However, if it is not feasible to have the utilities turned on, then a pressure test and electrical test is required and must be completed by an appropriately licensed professional.

What is the VA One-Time Close Construction Loan?
Frequent moves are part of military life. Relocating can be taxing and stressful on military members and their families. But once they are settled and ready to commit to building a new house, that process can bring on stresses of its own. With a VA One-Time Close Construction Loan, eligible service members can take advantage of the simplified loan program that allows them to finance the construction, lot purchase, and permanent mortgage, all with a single loan.
The VA One-Time Close Construction Loan offers the most appealing aspects of VA financing such as no money down financing and low interest rates. But it goes one step further for borrowers building a new home or purchasing a manufactured or modular home. It eliminates the redundancy of a second closing so borrowers don’t have to worry about requalifying or incurring additional costs.
And we have now simplified the program even further, with a single administration fee which includes the construction interest, as well as such things as:

  • Construction draws
  • Title updates
  • Any necessary loan modifications
  • Construction underwriting
  • Construction closing coordination

VA One-time Close Construction Loan Basics

  • Provides construction financing, lot purchase, and permanent loan
  • Single closing reduces closing costs and paperwork
  • Permanent portion of the loan approved before construction begins
  • Construction portion also underwritten and approved
  • No payments due during construction
  • No requalification once construction is complete
  • 100% financing through VA (funding fee may be financed into the loan)
  • Interest rate protected during construction
  • 15 year and 30 year fixed term options
  • 620 minimum qualifying credit score
  • One unit stick-built house, new manufactured, multi-wide housing, modular homes
  • Primary residence only

What are the benefits?
Save Money
The single-closing program means one appraisal, one set of closing costs, one underwriting and qualifying process, which eliminates the time and expense of a second closing.
No Payments During Construction
Paying rent for another place to live during the construction phase can place a burden on the borrower. With this program, once the loan is finalized, the payments don’t start until the home is complete.
No Re-Qualification
Once the closing is complete and the loan is in place, borrowers don’t have to worry about re-qualifying once the home construction is finished.
Locked In, Low Interest Rates
The competitive interest rates of the VA One-time Close Construction Loan are locked in prior to the closing and before the building process begins, giving borrowers an added sense of security knowing rates won’t increase during construction.
Please do not hesitate to contact our office should you have any questions!!!!