Finance Factors has a unique underwriting approach to all of our lending, including construction loans. Here are some of the challenges that could arise and our approach to resolving them.
- Insufficient down payment? Borrowers can cross-collateralize another property and use the combined Loan-to-Value (LTV) to finance 100% or more of the project, including debt service during the construction period.
- Investor loan challenges? We lend to mainland and foreign borrowers, and we also allow for an entity to be on Title or the Note: LLCs, Corporations, Partnerships and Trusts are accepted with a personal guarantor.
- High DTI ratio? With sufficient equity we can establish a debt-service account to pay all or part of the monthly payments during the construction phase of the loan.
- Need more time to build? Contracts in excess of $450,000 qualify for an 18-month construction term. Call us if you need an even longer term for larger jobs.
- Need more money? Our standard loan amounts go up to $1,500,000. If you have a larger request give us a call.
- Other underwriting issues? We have no minimum FICO score requirement, but we will mitigate a low FICO with a lowered LTV. Call us to discuss low FICO scores and unusual/difficult income and employment situations.
We Make it Easy
At Finance Factors, we realize that not every lender or borrower is familiar with construction financing. That’s why we are committed to working closely with you and your client to make the process as easy as possible and answer any questions through the loan process. Plus, we work closely with your client during construction to ensure successful completion of the home.
Call us today to see how Finance Factors can help your clients with construction financing!