Mortgages, loans, financial matters

The loan-to-value ratio for single-family construction loans varies from lender to lender. Some banks normally limited the entire construction-permanent loan to 80% of the appraised value of the completed property. Many lenders today, however, treat the construction-permanent LTV similarly to purchase programs, with total LTVs reaching 90%-95%. At 80% LTV, the need for private mortgage [...]

The loan funds are disbursed, or “paid out,” in stages. A typical construction loan structures four (4) disbursements, each of which will only come as certain stages are undertaken or completed. With most construction loans, the four disbursements are often divided as follows: 1. Foundation 2. Under roof and enclosed to weather 3. Roughed-in and [...]