Construction Loan Update: Banks are Abandoning Loans for Qualified Applicants Looking to Build Homes
Since August of 2007, banks and construction loan lenders have increasingly abandoned providing residential construction loans to families. They are favoring lending practices geared solely towards single-family purchases and refinances, rather than lending capital towards residential construction projects. As a result of these changes, the American dream of building a “dream home” is increasingly becoming less of a possibility for qualified applicants.
These families typically are able to provide full documentation to qualify for loans, and would have easily been given loans in past years.Rick Gomez, owner of Nationwide Construction Loans stated, “These families are not in the same bracket of the builders that have over built subdivisions, these are the families that just want to build the American dream on their own land.” Families looking to build a home using construction loans usually either own land on which they are planning to build, or are looking to purchase land and build a “dream home.”
This trend of these applicants being neglected by lenders holds true regardless of whether or not applicants have excellent credit have plenty of liquid assets or own the land free and clear.In recent years, major banks, such as Indy Mac Bank, Washington Mutual, and First Horizon, have either gone out of business or restructured. These major changes in banks have resulted in residential construction loan departments being eliminated one by one. As of 2009, JP Morgan Chase and CitiMortgage have ceased to provide construction loans.
The sub prime fiasco and the trend of stated income loans contributed to this situation. The end result has been a drastic change in possibilities for families looking to build even though they played no part in the mess..Even though banks have abandoned these qualified applicants, there are still lenders successfully helping applicants acquire the funding they need to build homes. For example, Nationwide Construction Loans Inc. is one of the companies which can help people looking to build homes secure the necessary construction funding. Nationwide Construction Loans specializes in providing construction loans to families that are planning on building their dream home, as well as construction loans to builders, owner builder construction loans, remodeling construction loans and land loans in California.
The company’s websites are Nationwide Construction Loans and California Construction Loans, Gomez asks those interested in residential construction loans to do extra homework before abandoning their plans for building their homes. He states, “Families looking to build homes should be aware that there are still excellent lending solutions available.”Rick Gomez specializes in construction loans and has been providing them for families for over 25 years. Over the years Gomez has worked for various large lending institutions as a construction loan officer.
Today he helps his customers obtain the best construction loan financing from the best lenders in the country. Nationwide Construction Loans’ experience, reputation and a large construction loan volume, has allowed the company to develop strong relationships with many lenders over the years.For immediate access to an e-book and report entitled “Construction Loan Inside Secrets” Nationwide Construction Loans. Learn how to get the best construction loan, rate and terms and discover common mistakes made in obtaining a construction loan.
