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Asked by Busyguy, Houston, TX Sun Aug 10, 2008

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Ken Skillern, , Albuquerque, NM
Sun Aug 10, 2008
Just happened upon your question, but your project sounds very similar to ours. We just moved to Houston recently and are building a house north of Conroe. We used Heather Robert at Cornerstone Mortgage Co. in the Woodlands, (281) 367-7005, and were very pleased. I don't know if you're going to find too many places for loans with less than 80% LTV. But you can count the equity in your property towards that number, subject to an appraisal. They'll just wrap your land and construction project up into one loan during construction. We had plans done by an excellent and economical architect over in Tomball. Our builder, the architect, and Heather have done many projects together and the process has been seamless and in our opinion extremely cost effective. Certainly in the affordability range you mentioned and for a high end custom home. If you'd like more info, I'd be happy to share more info. Just email Ken at Best wishes and good luck.
1 vote
Luke Allison, , Asheville, NC
Mon Aug 11, 2008
We have, in my opinion, one of the better construction programs out there in the market. If the land is valued at 20% of the total project's cost, then you should not need to bring anything to your closing other than closing costs. This is a 2-time close construction loan and the construction rate can be as little as Prime minus 1.5%.

If you can keep the construction at or below the conforming loan limit ($417,000) then you can do a one-time close with as little as 5% down.

Please feel free to call me if you have any questions.
Luke Allison
Flagstar Bank
0 votes
Bruce Lynn, Agent, Coppell, TX
Sun Aug 10, 2008
Most of what I see is more or less what you described as the 20% down rule on new construction, especially on a one off project like this. Most of the lenders I see probably wouldn't allow you to use the gift equity as part of the 20%. What does your builder suggest? You might also talk with a couple of local banks or credit unions. The credit unions used to be very strict, but some have tried to be more agressive with their loan portfolios over the past year or two, so might be worth a shot. If you have stocks or 401k you might be able to borrow the 20% from that and then pay them back when you put permanant financing in place. Depending on the equity you have in your home, could you take any out in a home equity loan? Most lenders are getting much more picky these days though lending on these types of projects as they have been stuck with some that were 1/2 finished and tough to sell. Good luck and let us know what you end up doing. Sounds like a project.
Web Reference:
0 votes
Dallas Texas, Agent, Dallas, TN
Sun Aug 10, 2008
The loan program 80/15/5 are now thing of the past no longer offered by lenders. Home building contruction based all for a $485K is approx. 6 months. CONSIDER selling your current property living in a short term lease or extended stay hotel. Many of our clients do this.
Web Reference:
0 votes
Steven Obrien, , Houston, TX
Sun Aug 10, 2008
I work for First Community Credit Union and we have construction programs that may assist you in obtaining financing over 80 LTV subject to approval.
281.856.9057 We portfolio a good portion of the loans we make minimumizing your cost. Your total application would have to be reviewed in order to see if we could structure your deal.
0 votes
Jeff Kessler, Agent, Austin, TX
Sun Aug 10, 2008
If you end up having to sell your home. I would suggest that you get a lease back from the new owners. Then have the lease last until your new home is complete. For the other part of your question I would contact a local lender to get some better information.
Have a good Sunday.
0 votes
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