- Many times in Sonoma County and the state of California there are bare lots available for sale, but unfortunately there are no lot loans for the buyer to purchase the lot. FHA has made a product that allows a buyer to purchase the lot, and finance the construction costs, all in one mortgage. The mortgage is called a construction to permanent loan. This one time close, construction to permanent loan, is available for all build-able lots in the Cities of Sonoma county, and we service the entire state of California as well. This is not a loan that Fannie Mae or Freddie Mac offers. Borrower’s must be credit approved and qualified.
- The FHA construction to permanent loan is a great option that provides the short term financing of a construction loan with the stability of a long term FHA fixed rate permanent loan, all without the need to re-qualify for the permanent loan after the construction process is complete.
- For manufactured, modular, and stick built properties:finance the construction, lot purchase, and permanent mortgage all with a single one-time close loan. No re-qualification. No second appraisal.
- The borrower must contract with a builder to complete all work on the property. That builder must be a licensed GC, and the borrower can act as the GC if they are appropriately licensed to do so.
- Max LTV 96.5% through FHA or 100% LTV through VA(not including the funding fee)
- No Payments due from the borrower during construction
- 15 and 30 year fixed rates
Jesse Gonzalez, President