First, call and speak with one of our licensed senior loan officers to begin the application process. We will conduct a quick phone interview to get a better understanding of your needs and quickly move to the application process.
Immediately following your application we begin the approval process. Our staff will work diligently to find the loan programs that best suit your needs and goals. We usually have an answer within 24 hours!
Once we’ve completed the approval process, you’re ready to fund your new loan. After you’ve completed signing the loan documents they will be returned to our funding department.
Your first step in securing a construction financing should be to talk to City Capital Realty financial advisor. The amount you may borrow will be an important part of your discussions with your builder in deciding what to include in your new home. An advisor can also answer your questions about how construction loans are structured.
constuction_loan_02First find the good location to build your dream property. Lot loan is the right loan if you are looking to purchase a commercial or residential lot to build. Once you have purchased your land, you will have time to make the basic decision and choose a contractor. Location may be one of the most important factors to consider.
How lenders and Financial Institutions calculate equity in the Construction Project?
A finished lot refers to a portion of land that already has road access and utilities in place. Additionally, it has been approved by the city or county as a separate parcel of land on a parcel map.
What insurance is required for a construction – to permanent loan?
If you purchased a land for $2,000,000 and construction cost will cost another $2,000,000 so the total construction project cost would be $4,000,000 you need to put 50% of your money as down payment that will be $2,000,000 and you can borrow the balance of $2,000,000 in order to finish the project. In today’s financial market this is the rule of thumb which most of the lenders are requesting.
If you intend to purchase a land that doesn’t have plan and permit, basically you temporary want to apply for land loan only. Some lenders are willing to extend a loan up to 50% of total price for a short-term period. So on this case you need to come up with $2,000,000 of your money as a down payment.
If you are planning to build a construction project but you don’t have plan and permit available immediately, you need to buy the land with 50% down payment and close your transaction. And after you obtained complete plan and permit, then you need to apply a new construction loan. On these scenarios your initial cost will be a little bit more but you don’t have any choice and this is how it works.
The interest rate for land loan is based on prime rate plus a margin and term will be between two to five years period.
Usually, when you apply for construction loan, you don’t have to make any monthly mortgage payments. In the initial cost breakdown that you are submitting to the lender, the interest reserve, insurance, property tax, closing cost, Escrow, title, appraisal, Phase I report, permit fee, architectural design fee and actual building cost (which includes hard + soft cost) is included.
Most lenders may require a Phase I environmental report or geological report to make sure that the land isn’t contaminated and dirt is strong enough.
We offer hard money loans with minimal documentation. If you have at least 20% down for a purchase, or 30% equity for a refinance, we can get your loan approved. Westpark Loans does loans the others can't!
City Capital Realty has been in business for over 20 years. We have funded over $100 million in loans, and have relationships with hundreds of lenders and investors. This gives us the ability to say YES and fund your loan quickly at the lowest rate possible