question for loan officer

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14 years ago 09/12/2009 6:10pm EDT

I am having trouble getting approved for a construction loan due to the inability of the lenders appraiser to find a comparative home in the area. It is a loghome and basically there are none in the area. The actual apprasial on the home I am proposing to build came in well over the amount I am requesting from the borrower and my credit is excellent. I know that lenders have really tightened up on some of these issues but it seems sort of ridiculous to not finance a home based on the fact that a comparative loghome just does not exist in that area. I have tried using other homes of the same quality but to no avail. Is there any solution to this?

14 years ago 09/12/2009 6:19pm EDT

re: Any loan officers out there?

203k loan should do the trick...

http://www.fhainfo.com/fha203k.htm

14 years ago 09/12/2009 6:23pm EDT

re: Any loan officers out there?

Oh - I just re-read your question... the 203k loan won't work for you, as it is a construction type loan for pre-existing homes (fixing them up).... not for new construction.

I would suggest to go to all your local banks, as big/national banks aren't touching construction loans right now...

14 years ago 09/12/2009 7:14pm EDT

re: rwc

Thanks for the advice. It would of course be cost effective to get a construction to permanent loan given that there would only be one closing but that may just not be possible at this point. I'll call around to see who may be able to finance the construction phase. Do you think a smaller lender would be more liberal with the comp apprasial?

14 years ago 09/12/2009 10:34pm EDT

re: Any loan officers out there?

Yeah you need to find someone who can keep it in-house rather than trying to meet fnma guidelines. May mean some type of balloon or maybe a 5/1 ARM (not talking about the old sub prime crap). Maybe the credit markets will get back to normal by then and you can refi. But just in case, go for an ARM with decent caps.

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