Many lenders have left the home construction marketplace. It is too risky for them and entails a huge amount of work.
Construction
lending is mostly limited to a property that will be owner-occupied
upon completion. "Spec" financing (financing a speculative development
for sale) is far more difficult to achieve. The risks are higher and the
lenders are of a different breed. Developers who are building new
single family construction will pay higher rates for this type of loan -
and justifiably so.
That being said, there are a couple great lenders who can provide a loan for your single family construction project.
They
are industry veterans who understand the intricacies of lending to
someone building a house. Call us for an introduction to the right
lender.
