Hi, I need a construction loan. I remember that on FW there was a man from New Jersey who was able to get good rates, is he here by any chance?
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Is this for an investment property? If so on Biggerpockets.com there are tons of hard money lenders. I know a real reputable one in Texas for Texas properties.
Depending upon how much you need, a lightstream no doc auto loan and an apporama for 0% balance transfer options might be an option…
It’s for a residential construction, need $800,000 in my estimate
Sorry if I am naive about what you are seeking but when I did this I did a one close construction loan . It covered lot then construction then the 30 year home loan with one closing the rates were market rates.
Right, that’s what I want to do as well
So I just went to several mortgage companies and compared rates. They all wanted 10% down and the rates were a little higher than the 30 year mortgage rate but not much.
And effectively, they disburse funds to a builder as a “construction loan” and then it converts to a regular old mortgage when the house is officially built and you “close” (get the keys/move in)?
What happens to the amortization schedule? I assume it just starts when you close on the loan, while the home is being built, and continues as-is for the remainder? That would be kind of a decent deal, psychologically.
On mine the lender gave the money out to the builder in stages (they sent someone out when framing done, electrical done etc.)
On mine interest accrued while under construction then payment started when a certificate of occupancy was given. I think they also gave the option of paying from the start as well.
Sorry for the forum necromancy, but I’m in kind of a similar situation (but way less money needed). We played a tightrope with our budget on a home renovation and have had a few things come up, putting us in a situation where we need roughly $30K-40K for like what may be as short as a month (but could be up to about 5 months). It’s a situation where I immediately thought of the old school apporama, but it sounds like those don’t really exist anymore? I never did one.
Our only real plan for now is to get a 0% APR intro card and at least put everything on it that we can, but that’s not going to help as much as I’d like. I also want to apply for a new loan using my personal credit after this construction is done, so I’m bummed about needed to do a hard pull in the first place.
Anyway, thought this might be a good place to ask if the old style AoR was actually still available and I’m just missing it, but I don’t see in anywhere.
If it is just 30-40k for 1-5 months, open 0% balance transfer BUSINESS credit cards. Those won’t show up on your credit report. Hard pull barely matters, just a couple of points hit to the score.
Depending on your situation, a 401k loan could be an option here. In my plan it is only $50 and they allow you to continue contributions while the loan is out. I would predicate this on you have a solid, short timeline this would be paid back. It is essentially like moving a portion of your 401k to a short term bond fund.
I will probably get hammered about how bad of an idea this is, but for me it was cheaper than home equity loans and less hassle than getting enough from new card balance transfers. Also no impact to your credit or debt ratio.
Credit, no impact, correct. Debt to income ratio though, I am 99.999% sure this is required to be disclosed, and will increase the debt:income ratio.
I think loper means if you apply for something like another credit card, car loan, small personal loan, those companies just will pull from your credit report and not see it.
Some banks do report business CCs to personal reports though, should check out DoC before picking the credit card(s) to make sure they don’t report if that’s what you’re going for.
Even still, since we’re talking about mortgages here, I figured it was something that should be said, even if not directly applicable.
Chase business cards do not seem to report to personal CR in my experience (thus far anyway).
Thanks to all of you for your responses, but extra ++ thanks to loper for this tidbit. For various reasons (that make me want to pull my hair out) all my money in my 401k is sitting in a terrible money market fund, so pulling half of it out as a loan is not going to hurt via missing out on growth. I think it looks like it’s maybe $75 to do that loan, but that will probably get me at least close to where I need to be, and it would be repaid before I’d be moving it out of the money market fund, so it might actually be a rare corner case where this works out pretty good.