Copyright
©2006 Florida Preconstruction Programs

C/P FINANCING

Dear Potential Investor,

This is a general guide of the investment process and thus, actual figures and timelines may vary, are subject to change without notice to the investor, and FloridaPreconstructionPrograms.com cannot guarantee any results.

1. Guidelines for financing amounts on construction to perm loans will be based on 90% of the appraised value for investors with a credit score greater than 720 and is available up to 85 % of appraised value based on credit scores between 680 and 720. Maximum loan amount is $300,000.00 plus or minus. Higher loan amounts are available, although the loan parameters change slightly.
    

2. No lot seasoning is required.
    

3. The above loans will be written on the bases of stated income and verified assets. If the investor chooses a full doc loan program the parameters improve.
    

4. There are a range of loan products available for this program, from thirty year fixed loans to three and five year ARM’s. If a three year ARM is chosen as the permanent loan it will be assumable by a qualified buyer if the investor chooses to sell the property prior to the expiration of the three year ARM.
    

5. Conversion option on the end loan is possible prior to permanent financing. The investor may switch from an ARM to fixed or fixed to ARM, etc.
    

6. A one time increase in the loan amount during construction may be accomplished if the investor decides to add additional features or change the construction due to personal preferences.
    

7. There is one closing for both the construction and permanent loan.
    

8. The loan program at present has a cap on the interest rate of prime and a float down if interest rates decrease during the construction period.
    

9. An interest reserve account will be established up front and added to the loan amount.
    

10. The loan may not be prepaid prior to the certificate of occupancy. After Certificate of Occupancy the lender encourages the borrower to select a three year ARM as the permanent loan, which is assumable by a qualified buyer of the property and a second mortgage to piggy back on the first is in the development stage to cover the appreciated value of the home.
     

11. The mortgage payments during the construction period are interest only; at prime, based on the draws to date from the contractor.
     

12. Total closing costs typically run from three and one half percent to four percent of the loan amount.
     

13. Qualified investors may initially undertake two investment projects. When one property rolls to permanent status another property may be initiated. The lender will allow a maximum of ten financed properties per borrower.

The above steps provide a reasonable estimation of the investment process; however, each particular transaction is unique, especially since each Investor is unique, based upon credit history and market conditions. FPC does not guarantee any specific time-frame, costs incurred, quality of services provided, or results from this investment process. Hopefully, this information will help you, the Investor(s), to make a reasonably informed investment decision for your future success.