We are pleased to announce that we are again able to offer flexible, well priced builder Inventory mortgages.

When the financial and real estate world had a bit of a hiccup in 2009 there were many lenders left holding mortgages on speculative homes the builders had built with the plan of reselling for strong profits at completion.  Unfortunately when the markets slowed down, these homes took quite a bit of time to absorb, leaving lenders who had traditionally relied upon relatively quick turn over on their builder inventory mortgages see their potential risk dramatically increase as they were left with a long standing exposure of unsold homes.

As a result of these events many of the major specialized builder inventory lenders decided that this was an area of mortgage lending that they would like to step back from.  The good news is that They are now back!

This is good news for two specific groups of people:

• Regular home owners as it shows an increase in market confidence by the lenders along with a reduced cost of funds for builders which could reduce the overall cost of a new home purchase.
• Home builders who would be able to use builder inventory mortgages to:
  •  Replace their more expensive construction financing
  • Access additional funds from their homes once they are complete in order to redeploy the funds on additional home builds

Details on qualification and terms for builder inventory mortgages:

• Documents the lenders will ask for:
  • Appraisal
  • Company financial or income statements to confirm the loan is viable
  • Details and guarantee from the owner of the home builder
• Mortgage terms:
  • 65% loan to value net
  • 5.49% interest
  • 1.75% lender fee added to the mortgage amount
  • Fully open for repayment at any time without restriction or penalty

We are experts in helping our clients obtain flexible and straightforward builder inventory mortgages, please feel free to contact me directly for more information – Rylan.