Construction Loan, purchase

[brendo927]

Does anyone know a lender who will do a land/construction purchase? I have a borrower who I refianced in the past who owns land is looking to build a house. I know it is a pain to do but he is a very good customer. He is a conforming borrower with high 600 scores and is going to put 35-40k down on a 300k construction loan. I just can't find a lender who will touch it. I've been told that any bank can blow me out of the water as far as rates and such. Is this true?

[Greg]

Countrywide, Accubank, First Horizon, Interfirst....

I do not see the problem. He owns the lot correct? Is a house on it already? Is there a mortgage?

From my understanding he just owns a lot and if it is clear then it is part of the 10% down-payment that most consider. So then all he needs is 30k - lot value = cash out of pocket at close.

Countrywide has a nice one because they give the borrower options on the end loan but the down side is they do not have an extended lock so if rates climb it is not so great. First Horizon has an extended lock.

I would do Countrywide though because he can even do cash out on the end loan i think if he wanted. Many more options.

[brendo927]

He does not own the land but is looking to buy it and build on it.

[The Wizard]

Hi Brendo,

In addition to Greg's list try Indymac we have done alot of Construction loans through them. The website address is www.indymacb2b.com.

Have a good one!

[HisHouseMortgage]

IndyMac gets my vote