Construction Loans in NV, CA and CO

I offer a true “one-time-close” loan program designed to finance the construction or major remodel of a primary residence or second home (meaning it won’t be rented out or “flipped”). 

Total Acquisition Cost (TAC) is defined as the cost of construction plus the purchase price of the lot. i.e. Lot price is $500,000. Cost of Construction is $800,000 = TAC of $1.3mil

Conforming Construction Loans-Maximum conforming loan amount of of $625,000 in most counties and $822,375 in some “high-cost” counties. 10% down – Primary Residences Only. 720 score.

Jumbo Construction Loans For Primary Residences –

* 15% Down – Up to $1,000,000 loan amount with 760 score.

* 20% down – Up to 1.5mil loan amount, making $1,850,000 the maximum TAC. You can always put more down to increase the TAC but the loan amount must be 1.5mil or less. 720 score.

* 30% down – 2.5mil max loan amount. (i.e. a 3.6mil TAC with 30% down puts the loan amount at right about 2.5mil). 720 score.

Example: 80% LTV (20% down) is based on lot purchase price plus cost of construction. i.e. Lot price is $500,000 plus $1,000,000 cost to build = $1,500,000 total acquisition cost. You need 20% of that, so $300,000 down payment is required.

If you already own the lot, your equity counts towards the down payment.

Reserves – 6 to 24 months of the new payment amount needs to be in your accounts at close of escrow. Retirement and stock accounts are acceptable sources. Months of reserves needed is based on the loan amount.

This loan includes financing for both the construction and permanent loan in one closing. That means you save the expense of dual loan fees and the worry of having to re-qualify for a permanent loan after the home is complete.

Interest-rate is fixed and secure from beginning to end. Construction term varies. Interest Only payments during construction!

Soft costs such as Architect and Engineer can be financed.

ADUs (accessory dwelling units) otherwise known as “Casitas” are allowed as long as they are on the plans.

“Cost-Plus” construction contracts are ONLY allowed IF there IS a maximum cost in the contract.

Tear-Downs and renovations are allowed. 

20-Acres maximum. 

“Owner-Builders” are not allowed but your contractor could hire you to do some of the work to gain some sweat equity.

During the construction period, Borrower(s) must pay all property taxes and insurance premiums.

Building a house from the ground up could be a pain if you don’t have a Loan Officer who is also a General Contractor.

NO MANUFACTURED HOMES!

Another option is to renovate an existing property and make it your own. The down payment is much less and its typically much quicker to renovate over building. Check out my Renovation page.