Andrew,You are exactly on the money again :) Modular sales people did refer me to Salem Five. Why?! Is this the only company that will pay out a COD? That is one more worry - limited choice of lenders, beyond just a construction loan. Are you an owner of a modular home? Curious to hear about your experience.
@MichaelI will check out Needham Bank, thanks for that advice. This house is for me, I will be the primary resident. It is that my wife may have an odd circumstance on her credit that will prevent me from using her on the mortgage. The plan is to live in this house for 10-20 years, after that who's to say how the house was assembled :)@AndrewI was reading some place that the problem with paying on delivery is ameliorated with a process called "assignment of funds". Is that common?
Funny you should ask :) I feel more comfortable with modular construction - their estimates seem to have less margin for error. Now if the banks agree with that, is another question. For the non-owner occupied co-borrower, I feel comfortable with both parents to be on the mortgage and being co-investors.How does credit score of the spouse affect "total" score? Is lowest of the two taken or average?
I am checking into possibility of buying a teardown and building in greater-boston. Before I call a bunch of banks I wanted to get an idea of what that would entail. I am budgeting 400 for land and 300 for new building. My credit has been 800s for years, my wife's is not very good. No debt, we roughly make 80-110/yr each, 25% down. Can we do it with just me being on the loan? Can we do it with someone else instead of my wife being on the mortgage, relatives with perfect credit? Can this be a single transaction? Purchase an existing tear-down quality house, provide plans, builder/construction company, due diligence, and get a construction loan for 700 ?