Land Loans in California
Construction loans require the new homeowner builder to own land and California Construction Loans provides the lending sources to obtain the best land loans.
Land Loan Overview
Short term financing for a residential lot that will be built on within the next 2 years.
Loan Purpose
Purchase, Rate & Term Refinance
Products/Pricing
1-month interest-only Prime-based ARM with a balloon.
Processes
Modified/Standard (Full doc.), Asset Based Stated Income (ABIP) and LoanQuick.
Occupancy
Intended for primary or second home construction.
Property Type
Zoned residential. Roads, utilities, water and sewer must be available to the site.
Term
24 months. A 6month extension may be available.
LTV/Loan Amount/Credit Score
| LTV | Loan Amount | FICO |
| 80% | $500,000 | >=720 |
| 75% | $700,000 | >=720 |
| 70% | $1,000,000 | >=720 |
| 65% | $1,500,000 | >=720 |
| | |
| 80% | Conforming | 660-719 |
| 75% | $500,000 | 660-719 |
| 70% | $700,000 | 660-719 |
| 65% | $1,000,000 | 660-719 |
Reserves
12 months PITI
Total Debt Ratios
40% back end.
Appraisals
2 appraisals are required for loan amounts greater than $1,000,000.
Fees
$550 commitment fee.
Customer Loyalty Discount
If borrowers refinance their Lot loan to a new Construction Loan using their original mortgage broker that assisted with the lot loan, they can receive a credit towards their construction loan closing costs. Credit equal to .500% of the lot loan amount. To be eligible for this discount, lot loan must have a minimum of 12 months seasoning.
Coverage
We help clients get land loan in all the cities in California including the cities of Los Angeles, San Francisco, San Diego, Manhattan Beach, Los Gatos, Mill Valley, Burlingame, Calabasas, Newport Beach, Cupertino, Rancho Palos Verdes, San Carlos, and Danville.
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