CONSTRUCTION-TO-PERMANENT,
SINGLE-CLOSE GROUND-UP CONSTRUCTION
DESCRIPTION: A first mortgage loan for construction and permanent
financing of a primary or secondary residence. Borrowers will have one escrow closing and
will sign one set of loan documents for both the construction and the permanent loan
phase. The following programs are available: 30- and 15-year fixed rate, 3/1 Treasury ARM,
and one-year Treasury ARM.
REQUIREMENTS: Minimum Loan Amount: $50,000 Maximum Loan
Amount: See Below
Term: Construction term varies between 6, 9, or 12 months;
permanent loan fully amortizing over 30- or 15- year term after construction.
Eligible Properties: Single family one-unit detached residences;
detached dwellings in Planned Unit Developments (PUDs); and manufactured homes permanently
affixed to the property.
MAXIMUM LOAN-TO-VALUE (LTV) AND LOAN AMOUNT: The lower of 90% of
construction cost or the LTV guidelines below, based on appraised value:
| TRANSACTION |
OCCUPANCY |
MAX. LTV |
MAX. LOAN AMT. |
| GROUND-UP CONSTRUCTION ONLY -
OWNER OCCUPIED |
PRIMARY RESIDENCE |
90% |
$400,000 |
| 80% |
$500,000 |
| 75% |
$650,000 |
| 70% |
$1,000,000 |
| SECOND HOME |
80% |
$400,000 |
| 80% |
$500,000 |
| 75% |
$650,000 |
| 60% |
$1,000,000 |
NOTES:
(1) The program guidelines presented here are general.
(2) Subordinate financing is not permitted. Reduced
documentation/no-income verification programs are available for self-employed only.
- Private Mortgage Insurance rates are based on monthly premiums for
fixed-rate loans. Other plans are available and different rates apply to loans with
temporary buy-downs or adjustable rate features. Monthly premium plans require no premium
in advance and are collected each month. Annual premium plans require 1 year’s
premium at settlement and the monthly amount with each subsequent payment.
- Under the single rate program, the interest is fixed throughout the life
of the loan, including both the construction and the permanent loan phases (except the 3/1
ARM program, which becomes a one-year Treasury adjustable rate loan after the first three
years of the permanent loan). Roll down and floating rate options are also available.
CONSTRUCTION-TO-PERMANENT, SINGLE-CLOSE
PURCHASE/REHAB or REFINANCE/REMODEL
DESCRIPTION: A mortgage loan to combine the purchase of and
improvements in a home, or to refinance and remodel a home. Borrowers will have one escrow
closing and will sign one set of loan documents for both the construction and the
permanent loan phase. The following programs are available: 30- and 15-year fixed rate,
3/1 Treasury ARM, and one-year Treasury ARM.
REQUIREMENTS: Minimum Loan Amount: $50,000 Maximum Loan
Amount: See Below
Term: Construction term varies between 6, 9, or 12 months;
permanent loan fully amortizing over 30- or 15- year term after construction.
Eligible Properties: Single family one-unit detached residences;
detached dwellings in Planned Unit Developments (PUDs); and manufactured homes.
MAXIMUM LOAN-TO-VALUE (LTV) AND LOAN AMOUNT: For purchase
transactions (home owned less than 12 months), the loan amount is based on acquisition
cost plus costs to construct or improve or the appraised value, whichever is less. For
refinance transactions (home owned longer than 12 months), the loan amount is based on the
appraised value after improvements.
| TRANSACTION |
OCCUPANCY |
MAX. LTV |
MAX. LOAN AMT. |
PURCHASE/REHAB OR
REFINANCE/REMODEL;
OWNER OCCUPIED |
PRIMARY RESIDENCE |
90% |
$400,000 |
| 80% |
$500,000 |
| 75% |
$650,000 |
| 70% |
$1,000,000 |
| SECOND HOME |
80% |
$400,000 |
| 80% |
$500,000 |
| 75% |
$650,000 |
| 60% |
$1,000,000 |
NOTES:
(1) The program guidelines presented here are general.
(2) Purchase/Rehab properties may be purchased "as is" and
reconstructed, or have substantial improvements done. Refinance/Remodel properties are
currently owned, and have been damaged by fire, flood, or earthquake, or need extensive
home improvement.
(3) Private Mortgage Insurance rates are based on monthly premiums for
fixed-rate loans. Other plans are available and different rates apply to loans with
temporary buy-downs or adjustable rate features. Monthly premium plans require no premium
in advance and are collected each month. Annual premium plans require 1 year’s
premium at settlement and the monthly amount with each subsequent payment.
(4) Under the single rate program, the interest is fixed throughout the
life of the loan, including both the construction and the permanent loan phases (except
the 3/1 ARM program, which becomes a one-year Treasury adjustable rate loan after the
first three years of the permanent loan). Roll down and floating rate options are also
available.
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