Highlights
- Third-party land purchase can be included
- 12-month build time from date of closing and funding
- 12-month interest only payments from borrower during construction
- Interest accrual paid monthly by borrower on disbursed loan funds to the builder through the draw process
- Construction fees paid by the builder: draw fee, progress inspection fee and date-down endorsement fees
- Borrower participation or borrower acting as sub-contractor not allowed
- Builder-owned properties not eligible
- Investment properties not eligible
- Property type: Single family residence
- Primary residence: conventional construction-to-permanent (C2P) single close, 95% LTV
- Secondary residence: conventional construction-to-permanent (C2P) single close, 70% LTV
- Two-time close conventional available. Final permanent mortgage provided by Goldwater Bank
- Primary residence: FHA construction-to-permanent single close and two-time close
Builder Approval Requirements
- Minimum of 2 years active building
- Acceptable track record with trade references
- 660 minimum credit score
- Commercial insurance policy or policies indicating an acceptable level of general liability coverage
- Copy of any and all license in the state which business is being conducted
- All build contracts are to identify clearly all overall costs of construction
- “Self-help” programs in which the borrower acts as the general contractor is not permitted
- Borrowers may not act as a sub-contractor to the general contractor
