Product Guide
| Guidelines | Utah | Idaho |
|---|---|---|
| LTV | 80% | 80% |
| LTC | 90% | 85% |
| FICO | 680 | 680 |
| Ratio (Back) | 42% | 45% |
| Max Loan | $600K | $750K |
| Income | FULL | FULL |
| Occupancy | O/O | O/O |
| Rate | 5.50% **See Below | 5.50%**See Below |
| Owner/Builder | Allowed | Allowed |
Appraisal
Utah only–CCS will order the appraisal. CCS needs the cost breakdown, full set of plans, and check made out to “Westbench Appraisals”. Salt Lake Metro — $400. Everywhere else and Jumbo’s — call for price. All appraisals must be prepaid.
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 be included in ratio calculations.
Eligible Borrowers
Individuals only.
Eligible Properties
Owner occupied, primary residences only.
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.
Rates
Rate is Prime + 2.00% if the LTC is greater than 80%. The rate is Prime + 1.00% if the LTC is 80% or less. **There is a 5.50% floor on the rate.**
Builder Pre-sold (Loan in the Builder’s Name)
Currently not available.
Closing Fees
1.00% Origination (2% fee on loans less than $100,000)
$495 Underwriting
$160 Document prep
$37 Flood Cert/Wire
$100 per month Inspection Fee (based on loan term)
$300 Servicing fee on a 9 month loan
$600 Servicing fee on a 12 month loan
Owner-Builder
Allowed. $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. **The origination fee for owner-builder projects is 1.50%.**
Product Questions and Answers
- What are the rates for construction loans?
- What are the guidelines on Stated Income Loans?
- Can the borrower use loan funds to purchase the lot?
- What is the difference between LTV and LTC? When do they apply?
- Are exceptions granted for loans that don’t meet the guidelines?
- What is the maximum DTI (Debt-to-income) ratio?
This product information may be changed at any time and is intended exclusively
for CCS-approved mortgage brokers.
