Single and two family construction 80% loan to construction cost Not including land acquisition, Borrower must escrow 20 % of capitol required, and as completion stages are met the borrower will draw down 80% of the lender funds and 20 % from the borrower’s escrow as required:Example:
$400,000 Construction Loan
$100,000 First Draw Down = 80% = $80,000Lender funds
20% = $20,000 Borrower Escrow
The loan term is for 18 months with a possibility of 6 months extension, Rates are currently 4.99 During Construction period, then after completion the borrower is required to sell or Locate Permanent Funding.