Thursday, May 24, 2007

Advantages of Construction to Perm Loans

1) Construction Perm loan is a "One Time Closing" saving on dual closing costs

2) The lender protects the customer's interest as lender inspects property before

each draw by the builder - thereby protecting you against lien waivers

3) You pay interest only on outstanding balance as loan is drawn down

4) You pay the doc stamps on deed which are based on the land ONLY

5) Don’t need to sell your house for 12 – 18 months and can live in current

home while new home is being built, making only ONE move

6) LOCK IN rate at current market rates with the option to modify to fixed at completion

7) Can pay mortgage down at Certificate of Occupancy

8) Qualify using debt ratios based on new home ONLY

9) Use "ADDITIONAL COLLATERAL" program to fund up to 100% of purchase price

proving there is enough equity in current home. (Call for details)

10) Build now at today’s prices

11) Money can still be earning in Stock Market or on other investments

12) Often pay taxes on land only during first year of ownership

13) Insurance is very low

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