LOT LOANS

New Construction - Loans For Land Purchase

We know that owning the home of your dreams comes at a price, so we designed a Construction Lending Department that is known for offering you the best options with superior service and a streamlined loan approval process,  that will make building your home that much easier.

We know that building your home is an exciting and busy time, we will work with you and answer your questions and your contractor's questions which will keep your project moving smoothly.

Here are the high lights of our Construction Lot Loan Programs:

Features:

· Loan amounts up to $1,000,000

· LTV's up to 90%

· Full and Stated Income Document Types

· Decision credit scores as low as 660

· For future construction of Primary residence or Second homes

· As little as 6 months PITI reserves

· DTI ratio up to 45%

· Up to 50 acres

· Investment use is prohibited

Lot Loan Q & A: 

Q. How do I know where I should build my home?

A. Location may be one of the most important factors to consider. Although many people have a geographic location in mind, some are open to alternatives. It's important to consider your lifestyle (and those you'll be living with) as well as the cost. If you're planning a family, schools will be important. If not, you may want to consider other factors such as proximity to work, or accessibility to the beach, the mountains or leisure activities.


Q. What is a "finished lot"?

A. A "finished lot" refers to a portion of land that already has road access and utilities in place to the lot boundary. Additionally, it has been approved by the city or county as a separate parcel of land on a parcel map.


Q. Can I buy a piece of land that is not a finished lot and save some money?

A. While it may be possible to purchase an unfinished lot, generally this is not advisable for an individual building their own home. The costs of bringing roads and utilities to the first lot in a new area are usually very high. Typically, the first person to build pays for others who will build later. There are land developers who specialize in preparing lots for building (this may include zoning and/or soils issues, as well as bringing roads and utilities to the site, and creating a building pad). Often, these lots are in a planned community.


Q. What do you mean by "planned community"? Aren't all communities planned?

A. No, many older communities were not planned; they evolved. Certainly, as a city has grown, plans have taken shape. But in many cases the nucleus of a community was started many years before the community or city planning existed. In many instances, it is this unplanned characteristic that gives a community its charm.

A planned community, in contrast, generally offers a specific style and certain amenities at a package price. Depending on the size and location of the community, these amenities may include greenbelts, landscaping, biking trials, swimming pools, even schools and shopping centers. Some amenities, such as the community pool and greenbelts, are paid for through a homeowners' association, others are paid through taxes. Still others are design enhancements intended to encourage potential buyers to purchase in an area or to attract more commercial business.

Many of the more costly amenities included in a planned community may not be affordable for a homeowner on an individual basis. However, some of these amenities may not be important to you. After all, priorities, like lifestyle, vary. If you select a home in a planned community, you'll generally have a more structured community where decisions are made jointly rather than by the individual homeowner. These community decisions include individual home design and landscaping. While some homeowners may consider this an acceptable trade-off to ensure an attractive environment, others may consider it an infringement on their rights. It's important that you know how you feel before selecting the type of lot you want.


Q. Can tax bases differ within the same community?

A. Yes, they can. While some cities already have parks, schools, and streets, newer communities built within the same city may have special assessments that cover the costs to develop or maintain new or existing parks, schools, streets, etc. These assessments may be for a prescribed period of time or may continue indefinitely. A little research goes a long way. Here again, a good real estate agent or title company officer can often provide you with this information.

Q. I've found the perfect location, but I'm not ready to build my dream home. Can I obtain financing for the land only?

A. Yes, you can obtain a Lot Loan. Typically, this is short-term financing for the purchase of a residential lot suited for future construction. This loan allows you time to select an architect, builder, and design your dream home. Our Lot Loan program allows you to finance up to 50 acres. And when you're ready to build, we offer a one-time close Construction-to-Permanent Loan.