Lot Loans
Overview
Short term financing for a residential lot that will be built on within the next 2 years.
Loan Purpose
Purchase, Rate & Term Refinance
Products/Pricing
1-month interest-only Prime-based ARM with a balloon.
Processes
Modified/Standard (Full doc.), LoanQuick, and Asset Based Stated Income (ABIP)
Occupancy
Intended for primary or second home construction.
Property Type
Zoned residential. Roads, utilities, water and sewer must be available to the site.
Term
24 months. A 6month extension may be available.
LTV/Loan Amount/Credit Score
| LTV | Loan Amount | FICO |
| 80% | $500,000 | >=720 |
| 75% | $700,000 | >=720 |
| 70% | $1,000,000 | >=720 |
| 65% | $1,500,000 | >=720 |
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| 80% | Conforming | 660-719 |
| 75% | $500,000 | 660-719 |
| 70% | $700,000 | 660-719 |
| 65% | $1,000,000 | 660-719 |
Reserves
12 months PITI
Total Debt Ratios
40% back end.
Appraisals
For loan amounts greater than $1,000,000, 2 appraisals are required.
Fees
$550 commitment fee.
Customer Loyalty Discount
Borrowers can receive a credit towards their construction loan closing costs if they refinance their Lot loan to a new Construction Loan using their original mortgage broker that assisted with the lot loan. Credit equal to .500% of the lot loan amount. Lot loan must have a minimum of 12 months seasoning to be eligible for this discount.
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