"Interim Construction Loans"

"One -Time Close Construction Loans"

If you are needing an interim loan for constructing your primary residence, we can arrange financing for you. We work directly with clients or, if you are a builder, we would be pleased to assist your client on your behalf. Our approval process is fast and easy and probably includes items that are readily avaialble to you. We offer competitive rates and fast turn around times so that you can get started on your home as quickly as possible. When your home is complete, we can secure a competitive mortgage for you at a fixed rate for 30, 20, or 15 years.

FAQ's:

Can you do interim loans for spec houses or investment property? No, our loans are for custom built primary residences only.

How does a one time close differ from an interim loan?: With a one time close, you qualify and close on your permanent mortgage at the start, and your interim funds needed for construction are drawn from the permanent mortgage. In a standard interim loan, you qualify as if you were getting a permanent loan, but you obtain an initial loan to construct the home and then requalify and close into the permanent at the time the construction is completed. One advantage of a one-time close is that you have only one set of closing costs for the loan and your permanent loan interest rate is established and locked at the start.

Do I have to own my own land or lot?: It is best if you have owned your lot for one year or more and paid or financed the lot at the time of purchase. This puts you in a favorable position for your permamnet mortgage when you home is completed in that your permanent loan to value is based upon completed appraised value. If you have financed your lot less than a year ago, or need to purchase the lot with interim loan funds, be prepared to either have or pay-in equity at the time of closing on the loan. Your permanent loan will be based upon cost, not appraised value.

What is the length of time for an interim loan?: That depends upon the size and construction time of the home. Interim loans can go for 6, 9, 12 or even 18 months.

Do I have to make payments during the time of the interim loan?: Usually you would make interest only payments monthly on the money that is drawn out of the loan to pay your contractor/builder as work progresses.

What is the interest rate on an interim loan? Interest rates fluctuate, but currently rates are between 7.5% and 8.75% depending on your credit profile and equity in the project.

How long does it take to complete the interim loan approval process: Usually about two weeks if you have all of the supporting documentation readily available.

What documentation is required: We will need completed plans and specifications, cost estimates or builder bids, Settlerment Statement from your lot purchase and your personal financial data. For a complete list of items needed, please contact us at 210-493-5300 or email fred@txmortgage.com and we will forward a checklist to you.

Is an appraisal required: Yes, we will order an appraisal based upon the plans and specifications. The cost of the appraisal is approximately $400.00 and must be paid in advance.

Does my builder need to be approved?: For a one-time close, the builder needs to be established and approved. For a single interim loan, builder requirements are less stringent.

What geographical area do you cover? We are licensed to originate loans anywhere in Texas, however for interim loans we are limited to the San Antonio area and a 30-40 mile radius.

How long has your company been in business? We have been in the mortgage business since 1992. Official licensing started in 2000. We have been licensed mortgage brokers since that time.

How can I get more information? Please contact us at the phone number below, or, fill out our easy contact form and we will contact you as soon as possible.

If you have additional questions please contact us.