Construction Loan Update: New Bank Lending Practices will Negatively Impact Families Planning to Build Homes
January 15, 2010Banks and construction loan lenders have increasingly abandoned construction loans. They are favoring lending practices geared solely towards single-family residential homes, rather than lending capital towards construction projects. As a result of these changes, the American dream of building a dream home is increasingly becoming less of a possibility for qualified applicants. These families typically provide full documentation to qualify for loans, and would have been given loans in past years.
Rick Gomez, owner of Nationwide Construction Loans stated, These families have nothing to do with the builders that have over built subdivisions and have not been able to sell their homes, these are the families that just want to build the American dream on their own land.
Families looking to build a home using construction loans usually either own land on which they are planning to build, or are looking to purchase land and buy a dream home. This trend of these applicants being neglected by lenders holds true regardless of whether or not applicants have excellent credit or land equity available for down payment.
In recent years, major banks, such as Indy Mac Bank, Washington Mutual Bank and First Horizon, have either gone out of business or restructured. These major changes in banks have resulted in residential construction loan departments being eliminated one by one. As of 2009, JP Morgan Chase and Citi Group have ceased to provide construction loans. The sub prime fiasco and the trend of stated income loans contributed to this situation. The end result has been a drastic change in possibilities for families looking to build.
Even though banks have abandoned these qualified applicants, there are still lenders successfully helping applicants acquire the funding they need to build homes. For example, Nationwide Construction Loans Inc. is one of the companies which can help people looking to build homes and secure the necessary construction funding. Nationwide Construction Loans specializes in providing construction loans to families that are planning on building their dream home, as well as construction loans to builders, owner builder construction loans, remodeling construction loans and land loans in California. The companys website is www.nationwideconstructionloans.com,
Gomez asks those interested in residential construction loans to do the extra homework before abandoning their plans for building their homes. He states, Families looking to build homes should be aware that there are alternatives available.
Rick Gomez specializes in construction loans and has been securing them for families for over 25 years. Over the years Gomez has worked for various large lending institutions as a construction loan officer. Today he helps his customers obtain the best construction loan financing from the best lenders in the country. Nationwide Construction Loans experience, reputation and a large construction loan volume, has allowed the company to develop strong relationships with many lenders over the years.
For immediate access to an e-book and report entitled "Construction Loan Inside Secrets" visit www.nationwideconstructionloans.com. Learn how to get the best construction loan, rate and terms and discover common mistakes made in obtaining a construction loan. Call (866) 211-3344 to get immediate assistance with your construction loans today.