Construction Loans In Charleston, South Carolina
Construction loans are typically harder to get and slightly more expensive than a traditional purchase money mortgage because there is much more work involved while the property is being constructed. Usually the minimum for down payment is 10-15%. No matter if you are building a home in Charleston South Carolina, Mount Pleasant, Isle of Palms, or another part of the country most lenders and banks that offer construction loans lend under the same terms. Some banks will allow you to buy the lot you want to build on in addition to providing the funds needed to constructed the house. As a rule of thumb it's a little easier to get an approval for a construction loan if you own the lot first. Most home builders in Charleston will want to know that you have your funds in order before beginning the project. For more information about mortgages and current interest rates in Charleston, SC.
FHA 203 K Rehab Construction Loan
The Section 203(k) program is the Department's primary program for the rehabilitation and repair of single family properties. The borrower can get just one mortgage loan, at a long-term fixed (or adjustable) rate, to finance both the acquisition AND the rehabilitation of the property. Eligible properties are: 1-4 unit homes, condos, mixed use and townhouses. Learn more about getting a 203K construction home rehab loan or contact us for the names of experts in Charleston that specialize in this type of loan.
REQUEST LIST OF ELIGIBLE PROPERTIES HERE --->
Important Factors for Ensuring Approval New Home Construction - Charleston
1.) Great Credit
2.) 10% Down payment minimum
(usually 20% standard) for new build construction.
3.) Two most recent bank statements.
4.) Proof of same job or line of work for at least 2 years as well as the proof of income. With W2s, 1040s, and pay stubs.
5.) Proof of down payment money, source, and its liquidity.
Commercial Mortgage Financing Charleston South Carolina
1.) Cash flow projections.
3.) Detailed business plan.
4.) Proof of a lot of liquid assets (usually 20% down) sometimes a second mortgage is available from SBA (small business administration) up for a loan to value of 90%.
5.) Existing leases, rent roll projections. SEE BELOW -->
2.) Experience in development letter
* The leasing risk for a permanent lender is tied to the stability of the leasing market and the difference between rents on existing leases and current market conditions. For example, a lease to a tenant occupying 33,000 sq. ft. or 1/2 of 66,000 sq ft building, at $16 psf, maturing in one year, would have to be renegotiated at market conditions at maturity. If current market rates are $14 psf, there could be a significant reduction in the cash flow of the project, and thus its value. * This is why commercial mortgage loans have short terms, with balloon notes. So you have to renegotiate with them each maturity date.