Any piggs out there that can help me find a bank or broker that specializes in construction and/or land-only loans, or at the very least has experience closing construction or land-only loans ?
Not looking for web searches here – someone within your personal contacts only, please.
I’ve spent far too much time researching and talking to construction lenders in the last year. A broker isn’t the way to go.
For lot only loans, US Bank is one of the only games in town. A few small banks also do them, but the rates are 5%+ and they have short terms.
The problem with doing a construction loan at the same time as the lot purchase is that most banks want plans, a contract with a builder, and a building permit to fund a loan. First Republic is an exception. They offered a one time close that funded a lot purchase and provided more funds when ready to start construction.
If you can acquire the lot either with cash or a lot loan your options open up quite a bit. Locally Wells, US Bank, First Republic, Boston Private, JPMorgan Securities, Homestreet all have good one time close products.
I ended up borrowing some cash from a family member to buy my lot in the Crosby last year. The permit should get issued in a couple months. A 7 year interest only arm is my loan of choice and Boston Private, First Republic, and JPMorgan offer that product.
If you share a little more about your needs or PM me, I’m happy to give you all the contact info and notes I have.
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