New Construction
New Construction
New HMC lends on the current market value versus original lower purchase price, provided the borrower has 10% “skin in-game” of own (non-borrowed) funds and/or gifted funds. Therefore 90% on the original purchase and/or up-to 80% on today’s value.
A borrower was looking for a loan to complete the purchase of their newly built home in London, Ontario.
Key Facts:
- The original purchase price was $300,000 in 2016
- The borrower put down a 10% deposit to the builder, which equalled $30,000
- Today’s Estimated Value in 2020 was $400,000
Generally, in the mortgage industry, lenders lend on the lower price, in this case, the original purchase price of $300,000. Since the original purchase, the borrower hit a ripple in life causing them to lose their institutional pre-approval financing. The borrower is now at risk of losing their down payment.
The borrower came to us with the required 10% down, New Haven worked with the borrower and completed the Loan to Value calculation using today’s higher market value.
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.
