Rehab/Construction

Borrowers

Investors

Real Estate Pros

Loan types

Utilities

Construction/Rehab loan options

The 203K is the only mainstream program. The others are not, which means that there is limited availability and the terms are somewhat higher than they would otherwise be. The good thing is that you are dealing with portfolio lenders who set their own standards, and the conditions and loan pricing (rate and fees) are more flexible. - Paul :)

FHA 203K

A rehab to permanent FHA loan
Owner-occupied only, 1-4 unit properties.
Rehab only, BUT what makes it a rehab is when the existing foundation is used, so sometimes it can work for construction also.
Rate: Market FHA rate + 0.250% approximately

BORROWER / BUILDER LOAN
(Borrower who hires a builder)

1-4 family units, residence or investment property
Construction or rehab
LTV to 80%, to 90% with cross-collaterization
Land purchase up to 75% of the lot purchase price
12-18 month term
Available for less than perfect credit
Interest only payments based on funds advanced
Rate: 5%+, 3%+ fees

SELF-BUILD LOAN
(Borrower acts as own general contractor)
See Borrower/Builder Loan above.

BUILDER / SOLD LOAN
(Builder has a contract to sell the completed home)

1-4 family units (up to 12-units on exception basis)
Construction or rehab
LTV to 70%, to 75% with cross-collaterization (SFD only)
Land purchase up to 75% of the lot purchase price
12-18 month term
Available for less than perfect credit
Available for builders with limited experience
Rate: 5%+, 3%+ fees

BUILDER SPEC LOAN
(Construction of a model or spec home)

1-4 family units (up to 12-units on exception basis)
LTV to 50%
Land purchase may be included in the loan
12-18 month term
Rate: 7%+, 4%+ fees

FIX&FLIP, REO FUNDING
(Spec purchase and rehab)

1-4 family units
Up to 100% of cost
6-12 month term
Go here to request a scenario quote