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evolusd.
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February 23, 2009 at 3:10 PM #353340February 23, 2009 at 4:07 PM #352845
evolusd
Participant[quote=davelj][quote=Russell] You could call one like 1rst Centennial and see if they still do them.They might send you in the right direction anyway. [/quote]
1st Centennial failed. It was taken over by the FDIC on Jan 23. One of the reasons it failed was their exposure to just this type of loan.
Lots of local banks will make land/construction loans these days. But the terms have tightened up dramatically. Generally it might be 25% loan-to-cost and 50% LTV – WITH a personal guarantee for the entire loan amount AND you must have liquid assets to cover a large chunk of the loan. In other words, loans like these are still made, but only to folks who are only using the bank as convenience – they could almost finance the projects themselves. The loan must appear to be *almost* riskless to the bank.
[/quote]davelj is definitely right. We (California Bank & Trust) have lot purchase loans and construction to perm loans, but you have to be pretty rock solid to qualify. If you want more info, feel free to call me (Derek) at 858 623 3607.
February 23, 2009 at 4:07 PM #353156Participant[quote=davelj][quote=Russell] You could call one like 1rst Centennial and see if they still do them.They might send you in the right direction anyway. [/quote]
1st Centennial failed. It was taken over by the FDIC on Jan 23. One of the reasons it failed was their exposure to just this type of loan.
Lots of local banks will make land/construction loans these days. But the terms have tightened up dramatically. Generally it might be 25% loan-to-cost and 50% LTV – WITH a personal guarantee for the entire loan amount AND you must have liquid assets to cover a large chunk of the loan. In other words, loans like these are still made, but only to folks who are only using the bank as convenience – they could almost finance the projects themselves. The loan must appear to be *almost* riskless to the bank.
[/quote]davelj is definitely right. We (California Bank & Trust) have lot purchase loans and construction to perm loans, but you have to be pretty rock solid to qualify. If you want more info, feel free to call me (Derek) at 858 623 3607.
February 23, 2009 at 4:07 PM #353288Participant[quote=davelj][quote=Russell] You could call one like 1rst Centennial and see if they still do them.They might send you in the right direction anyway. [/quote]
1st Centennial failed. It was taken over by the FDIC on Jan 23. One of the reasons it failed was their exposure to just this type of loan.
Lots of local banks will make land/construction loans these days. But the terms have tightened up dramatically. Generally it might be 25% loan-to-cost and 50% LTV – WITH a personal guarantee for the entire loan amount AND you must have liquid assets to cover a large chunk of the loan. In other words, loans like these are still made, but only to folks who are only using the bank as convenience – they could almost finance the projects themselves. The loan must appear to be *almost* riskless to the bank.
[/quote]davelj is definitely right. We (California Bank & Trust) have lot purchase loans and construction to perm loans, but you have to be pretty rock solid to qualify. If you want more info, feel free to call me (Derek) at 858 623 3607.
February 23, 2009 at 4:07 PM #353319Participant[quote=davelj][quote=Russell] You could call one like 1rst Centennial and see if they still do them.They might send you in the right direction anyway. [/quote]
1st Centennial failed. It was taken over by the FDIC on Jan 23. One of the reasons it failed was their exposure to just this type of loan.
Lots of local banks will make land/construction loans these days. But the terms have tightened up dramatically. Generally it might be 25% loan-to-cost and 50% LTV – WITH a personal guarantee for the entire loan amount AND you must have liquid assets to cover a large chunk of the loan. In other words, loans like these are still made, but only to folks who are only using the bank as convenience – they could almost finance the projects themselves. The loan must appear to be *almost* riskless to the bank.
[/quote]davelj is definitely right. We (California Bank & Trust) have lot purchase loans and construction to perm loans, but you have to be pretty rock solid to qualify. If you want more info, feel free to call me (Derek) at 858 623 3607.
February 23, 2009 at 4:07 PM #353420Participant[quote=davelj][quote=Russell] You could call one like 1rst Centennial and see if they still do them.They might send you in the right direction anyway. [/quote]
1st Centennial failed. It was taken over by the FDIC on Jan 23. One of the reasons it failed was their exposure to just this type of loan.
Lots of local banks will make land/construction loans these days. But the terms have tightened up dramatically. Generally it might be 25% loan-to-cost and 50% LTV – WITH a personal guarantee for the entire loan amount AND you must have liquid assets to cover a large chunk of the loan. In other words, loans like these are still made, but only to folks who are only using the bank as convenience – they could almost finance the projects themselves. The loan must appear to be *almost* riskless to the bank.
[/quote]davelj is definitely right. We (California Bank & Trust) have lot purchase loans and construction to perm loans, but you have to be pretty rock solid to qualify. If you want more info, feel free to call me (Derek) at 858 623 3607.
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