Best of Luck!
The FHA 203k will NOT work for a construction loan. You need a different type of loan. The ONLY way it would work, is if there is an existing foundation! SO... if the builder will fund that piece you could then Plan and close on the loan, but I don't see that happening...
There are other options... feel free to give me a ring! :)
Here is a link from Mortgage News Daily that explains it.
I left you a voice message. I have 203k loans but they will not help you here. I do have several lenders for construction loans and construction perm and I would be happy to discuss your clients options.
Cornerstone Lending Inc
Southampton Pa 18966
215 953 0800
cell 267 992 7276
VOTED BEST IN BUCKS 2010
What you need is a residential construction lender that will finance 'owner-occupied' homes. A traditional 203(k) loan is not intended to build a new house from ground up, rather, it is intended for improvements to an existing structure.
I'd check with your local mortgage banker/brokers that might have access to one of these types of lenders or have your client & builder go to a local Bank to get interim construction financing, which will require a 'takeout/permanent financing' upon construction completion.
I know they exist since I have access to 2 of these type of construction to permanent lenders in Central Texas but not in PA.
How are you? Thank you for your inquiry. We have a direct lender that we use that does 203K FHA loans. And there is this one Senior Loan officer that is especially specialized in 203K loans. Here's his contact info:
Joseph K. Keller
Allied Mortgage Group
1033-A Mill Creek Drive
Feasterville, PA 19053
Mobile: (215) 817-9084
Office: (215) 355-5626
Fax: (215) 554-6970
If you have any questions, please feel free to email me at Phong.Lam@c21ag.com or call me at (267) 918-1880.
Hope that helps!
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Phong Lam, CSM
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