Construction Loans on the Cheap!

Construction Loans on the Cheap!

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PROGRAM SUMMARY

Conforming one-time close, nine or twelve month construction term program allowing for payment of interestonly during construction. Major remodels and tear downs are ineligible. Note to be modified upon completion of improvements to a fully amortized principal and interest payment. Soft costs (architectural, engineering and permit fees) may be financed, closing costs may not. Full third party builder contracts only. All loans close in the name of Flagstar Bank.

ELIGIBLE PROPERTY TYPES

  • unit site-built homes
  • Planned unit development (PUD)
  • Modular home (constructed in sections off-site, but when installed at the site takes on the characteristics of a site-built home)
  • Site condominium (detached), must be fee simple interest for land and dwelling
  • Rural Properties
  • Properties where construction has already begun. o Confirmation is required that Flagstar's first lien position is insurable by the title insurance provider for all construction completed prior to the closing of the Loans.
  • Properties with up to 20 acres o For properties >10 to 20 acres o Maximum 35% land to value o No income producing attributes.

TAX AND INSURANCE ESCROW

escrows will be collected at time of closing for taxes and insurance. The underwriter may (or must in some circumstances) project the real estate taxes as follows:

  • For Properties in California, property taxes may be calculated using 1.25% of the purchase price or the current tax rate as obtained from the local tax assessor's office
  • All other states the taxes may be calculated based on the current tax rate as obtained from the local tax assessor's office or the underwriter will use 1.5% of the purchase price During construction, the borrower will make interest-only payments on the funds disbursed along with taxes and insurance. When the house is complete, the borrower's payment will be modified to principal, interest, taxes and insurance. Mortgage insurance will be activated and the premium included in the modified monthly payment. This process will not affect those loans for which an escrow waiver is obtained. Borrower must carry a builder's risk policy until the property is eligible for standard homeowner insurance policy.
Construction Loans Qualifier
Why a Construction Loans?

Your Home Loan Could Be Fully Funded 30 Days From Now

  • Fixed Rates

    Fixed Rates

  • Adjustable Rates Mortgage (ARM)

    Adjustable Rates
    Mortgage (ARM)

  • Conforming Loans

    Conforming
    Loans

  • Jumbo & Super Jumbo Loans

    Jumbo & Super
    Jumbo Loans

  • FHA, VA, & USDA Loans

    FHA, VA, & USDA
    Loans

  • Terms from 5 to 30 Years

    Terms from 5 to
    30 Years

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