Product Guidelines
| Product | A | C |
|---|---|---|
| RATE | Prime + 2.00% | Prime + 1.50% |
| INCOME | FULL | FULL |
| FICO | 680 | 680 |
| INCOME RESERVES1 | NONE | NONE |
| RATIOS | 34/502 | 34/502 |
1401k/Retirement Plans are no longer used to calculate reserve requirements.
2Waived if AU approved
LTV/LTC exceptions are available on a case-by-case basis.
Appraisal
Appraisals are good for 2 months. If older, an update must be ordered.
Term
6 months. 9, 12, or 18 months may be granted for bigger projects on a case-by-case basis. In such cases, a $300 servicing fee will be added for each additional 3 month period.
Extensions
One 3 month extension can be granted for homes not finished within the original term. An extension fee of 0.50% of the original principal amount will be charged to the borrower.
Modification fee
A 3% Modification Fee will be charged anytime a loan is paid off by someone other than the original borrower, or the property is offered for sale.
Current Home
The borrower’s current house payment will not be included in ratio calculations.
Eligible Borrowers
Individuals only.
Eligible Properties
Owner occupied properties, second homes.
Contingency
5% minimum contingency fund required.
Interest Reserve
Required interest reserve account is built into the soft costs of the loan. This account is calculated by the following formula:
Loan with lot payoff: (Loan amount x 65% x rate x term/12)
Loan without lot payoff: (Loan amount x 50% x rate x term/12)
This account will pay the interest due during the term of the construction loan.
Builder Pre-sold (Loan in the Builder’s Name)
Currently not available.
Closing Fees
1.00-1.50% Origination fee (2% fee on loans less than $100,000)
$250 Underwriting
$100 Closing fee
$60 Document prep
$100/month inspections (based on loan term)
$25 Wire fee
$12 Flood fee
$300 Servicing fee on a 9 month loan
$600 Servicing fee on a 12 month loan
Owner-Builder
Allowed in all products except F. Fico > 680.
$300,000 general liability rider required on course of construction insurance. A letter of qualification required, stating by what means, contacts, or experience qualifies the borrowers to build their own house.
Title Insurance
Title Insurance will be ordered by Construction Capital Source.
