Qualification
Requirements

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There are four basic qualification requirements for our construction loan:

1  

The first requirement is to have good credit. This is determined by our review of your credit report.

2  

The second requirement is to have a level of income that will qualify you for a permanent mortgage with another lender. We do not require a commitment from another lender.

3  

The third requirement is that the loan amount will be enough to complete the construction of your new home. To assist you in fulfilling this requirement, we need you to complete our Building Budget Form.

4   

The last requirement is the down payment. Depending on the loan program you apply for, your down payment must be either 10 or 20% of the Total Project Cost. The Total Project Cost is determined by adding the value of the land to the amount needed to build the home. (see below)

Value of land $____________

* When you have paid at least this amount toward the purchase of your land and/ or toward construction, you will have satisfied the down payment requirement.

+ All costs of construction $____________

= Total Project Cost $____________

x 10% or 20% $____________

= * Required Downpayment $____________

In some cases, where you may be short on these requirements, you may still qualify with a cosigner.

If you are not able to pay the balance owed on your land, you may still qualify as long as the seller of the property is willing to subordinate.