There hasn’t been a decent retail construction loan product since the collapse in mortgage banking back in 2008. Consumers have been left to their own devices and local community banks to fund any home renovations or ground up construction projects.
In the North Bay, we haven’t seen substantial new construction in a decade, although there are several new projects that are online at this time. Finally, the mortgage industry is responding with several new loan products that could help homeowners and investors to fund desperately needed new homes and rehabilitate dilapidated housing statewide.
Our One Time Close (OTC) Construction to Permanent loan product has a lot to offer potential home owners. At its core, it is based on either an FHA or VA loan as the permanent financing after the construction phase is complete. Low to NO down payment and liberal credit qualifying means many families could qualify.
Here is a quick video on the product (90sec) and a flyer below:
Here is a PDF of the flyer: OTC_Flyer_NB
Remember, this product allows consumers to buy the lot, improve it, build and end up with a great fixed rate loan at the end with little to no down payment.