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construction loan

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New Member

construction loan

I have been approved for mortgage. I am going to try to get a construction loan. I will have 20%+ equity if they use loan to appraised value, but only about 10% if they use loan to cost. Does anyone know which method banks are using. Lot is free and clear, income is $100000, debt to income with new home would be 19% and fico of 688 mid.
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Community Leader
Super Contributor

Re: construction loan

Construction loan programs are unique to the bank offering them, so your most accurate answer will be from the loan officer who gave you the loan approval.  I am not aware of any PMI providers offering mortgage insurance on construction loans, so hopefully they use loan-to-value.  Back when credit was super easy the more popular construction loan lenders went off the loan-to-value, but those lenders are no longer in business (IndyMac, National City).

Helping people with mortgages (FHA, VA, USDA, Fannie, Freddie, Non-Prime, Construction, Renovation/Rehab, Commercial) since 2002
Located in Orange County, CA and lending in all 50 states
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