01
Apr
Construction Loans
Construction Loans
A construction loan can be a little more complex than a traditional home or business loan. When building from the ground up, the location and total cost to build are the first key factors, then these points are taken into consideration:
- Tarion is mandatory
- Both an As/Is and When Completed appraisal is needed to determine the value
- Both contract quotes and drawings are needed
New Haven Mortgage Corporation will lend up to four (4) Draws which can include the following:
- First draw – Backfill
- Project 16% complete, includes excavation, foundation, and backfill
- Second draw – Lock-up
- Project 40% complete, includes doors windows, framing, seething, roof, rough plumbing and electrical, insulation, rough heating
- Third draw – Drywall
- Project 70% complete, includes basement floor, drywall, heating, exterior finishing
- Fourth draw Completion
- Project 100% complete, including floor coverings, finished carpentry, painting, landscaping
In major urban centers, New Haven will often lend up to 80% of the Loan to Value on first, second, or third mortgages
In rural areas, New Haven will often lend up to 70% of the Loan to Value on first, second, or third mortgages. (Some Exceptions Apply).
No formal credit or income requirements required.
