Construction Loans

Whats the best way to go about getting a construction loan these days?

 

I went to BOFA today and it appears they dont want anything to do with construction! Apparently there isnt alot of building going on in South Florida currently, imagine that!

 

Im half way through the plans process with my architect and was thinking about borrowing some funds to build.

 

This is going to be an uphill battle.

Your best bet is going to be talking to a mortgage broker. They keep up with all the different lenders and know who is doing what at any given time. If you need to, pm me and I'll shoot you some qualified people down there.

 

I just bought a lot in Mediterra and am doing the same thing.

If this is for a single family home I have a good friend with an office on Lincoln Road that is doing construction loans down here and I'd be happy to get you in touch with him. If it is commercial, I work with a few guys that can take care of you.

Doc-Steve--Yes, this is residential.

 

I also have an office on Lincoln Rd, pass along his info and Ill contact him.

 

L-Power comes through yet again!

Doc-Steve--Yes, this is residential.

 

I also have an office on Lincoln Rd, pass along his info and Ill contact him.

 

L-Power comes through yet again!

 

I just spoke with my friend and he can only help you out if this is not going to be a primary residence. The two big issues here are that usury laws are much different (he mentioned something about a cap at 8% over an index) and the hurdles that homestead exemptions bring up in the event that he has to foreclose. I didn't realize that he was only lending on single family product that would be used as a rental property. If I misunderstood and you will be renting this property let me know and I will send you his way.

Ya this is primary. Thats some of what im running into around town. 2000-2005 it was simple to borrow at 80% of the appraised value for construction loans, sign on the line and your on your way.

 

I havent inquired yet about private money or investor money. If anyone has any info on how this works pass it along.

Ya this is primary. Thats some of what im running into around town. 2000-2005 it was simple to borrow at 80% of the appraised value for construction loans, sign on the line and your on your way.

 

I havent inquired yet about private money or investor money. If anyone has any info on how this works pass it along.

 

Private or investor money would more than likely be too expensive.

 

I would avoid a broker for a construction loan. Many haven't done a construction loan in 3-4 years, and those that have, probably haven't done many. You will probably end up as a guinea pig.

 

I would check with the small local banks. Many of the historically conservative banks have too much capital on hand and are aggressively looking for loans. Go get your end loan approval from BoA or WF and then shop it at the local bank level.

 

Again, brokers are decent for cookie cutter deals, but anything out the ordinary really throws them off these days. For example, I went to a very reputable broker to finance a package of 10 rental properties that we have and they ended up giving up after a week of "looking for a lender". I then went to a local bank and they were very aggressive with the terms and got the deal done immediately. They even called this week and asked if I needed more money...

 

Last, I do know that if have a current relationship with Wells, they have a construction loan that seems to be pretty decent.