Construction Loan

[saltman]

Sorry if this is off topic, but with all of the building going on here in the Project section I figured at some point someone or many of you had to get a contruction loan. Can someone recommend a company or bank that does this? I am in California but I don't think that matters. I am ready to build but in this economy I want to use someone elses money!


Thanks

Derik

 

[woodlandfarms]

I am in Loan HLL right now. It is so hard to get a loan... Especially on land. Our little slice of heaven is costing me sleepless nights right now. I wonder how many other people are suffering through this downturn... My recommendation is that you get a mortgage broker. Unless you have a 9 to 5 job and plenty of time to document stuff it is worth the point (1 percent cost) to have a guy or gal handle the loan.

I have a fantastic broker up here in LA. He handles all of California and knows his stuff on construction. His name is Wyatt Earp. Yes, and yes he is a descendant (not direct as Wyatt never had any kids he claimed). He is from Wyatt Earps sister...

PM Me off list and I will give you the number if you want it.

Carl

Sorry if this is off topic, but with all of the building going on here in the Project section I figured at some point someone or many of you had to get a contruction loan. Can someone recommend a company or bank that does this? I am in California but I don't think that matters. I am ready to build but in this economy I want to use someone elses money!


Thanks

Derik

 

[3RRL]

Derik,
I'm in CA too. We used Chase Bank and they are great to work with. They turn your construction loan to a permanent loan once construction is complete, but you can always shop for the best rate at that time too. We are going through Rabobank for that since their rate is very good right now.

 

[jdmar]

We used Farm Credit here in OHio...I think they have branches other places too. They only loan on land/farm/property/etc. They gave very good rates and really unique terms. If we do a lump sum payment we can either shorten the total years of the loan as normal or choose to lower the monthly payment and keep the years the same. In uncertain times I like the idea of a lower monthly payment if I so choose. And this does NOT require costs/points/refinance or any addition money to do. Just another option to look into.

Peter

 

[dmccarty]

We did a construction to perm load when we built the house since there was only one closing. You had to guess up front on how long you thought it would take to build the house and those convert to a perm loan. The range of the load rate varied depending on how long the house took to finish. the longer the time from closing the greater amount the loan rate could be. Course the rate could drop as well but it is a gamble.

We tried to get the loan via the Credit Union to buy our land but they were not interested so we went with a bank where a coworker was a loan officer. They financed the land and years later they got the construction loan. The CU did not want to help so they got nothing. Pretty stupid on their part. Don't think our bank is out in CA.

I hear how tough it is to get money but the banks keep wanting me to take out more loans. JD sent me some stuff yesterday saying they had raised my credit limit 4 times its normal amount! I thought what was "normal" is way to much! Guess they want me to buy a 9000 series tractor or something!

NOT going to happen. Don't have the money! Need to get rid of some debt as it is.....

Good Luck!
Dan

 

[bdeboer]

Second Farm Credit in Ohio. We converted our original construction loan and refinanced for a better rate a couple of years later. The charges were around $200 each time.