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Profile picture for cweaver56

Who provides construction loans?

I am looking to to build a home with a custom builder but will need to get a construction loan.  Who provides these?  I have only been able to find lenders that will require 30% down payment.  My credit is in the high 700s so that shouldn't be a problem.
  • December 03 2010 - Indianapolis
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Answers (9)

I have worked with Allied previously or you could try All Credit Considered. There website is weapproveloans.com - Good luck

  • December 06 2010
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Contact US Bank & Wells Fargo.

Happy funding,  Rudi
  • December 04 2010
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The downpayment could have more to do with the loan size than it does with the fact that it is construction.

What will your quisition cost be?
  • December 04 2010
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First, check with the bank that is financing the land.  Banks nowadays will be motivated to move a loan from commercial land loan to a primary residence mortgage.  Also, check with smaller, local banks; they are looking to grow business and can provide solutions that larger banks do not want to spend the time on.  
  • December 03 2010
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A 30% equity position would be the norm for a construction loan, is some cases 40%.  If you own the lot equity in the lot should count towards the down/equity.  Sit down with the lender and see what the numbers look like.  As for a builder with a credit line in the current lending environment that would be rare.  Your best source for a construction loan will be a small local bank.
  • December 03 2010
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Profile picture for JDERP
I've dealt with allied mortgage and they have a few programs for this specific type of loan. My contact there is Sam Frisoli #610-742-2708.
  • December 03 2010
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How big is the loan?

American Home Bank would be someone to talk to, email an inquiry to:

rhirsch@bankahb.com

  • December 03 2010
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Profile picture for shawnspaw
There are several lenders that can still do Construction loans, but you have to have good credit.  I would be more concerned that your builder is not offering to finance the loan for you while it is being built.  The builder must not have a line of credit to work with or else he doesn't feel that he can sell the home you are having built in case you back out.  
  • December 03 2010
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Profile picture for SeattleHome.com
Higher down payments on custom homes are becoming more prevalent.  Construction loans have been shown to be some of the highest-loss loans for banks in recent years, so they're not taking chances.

Try your local banks, if you have any long-term relationships with them.  They'll sometimes have more lenient guidelines for a "known borrower".
  • December 03 2010
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