We have been providing Florida construction to permanent financing with new home builders and buyers for over 12 years.  However, we are quickly getting used to the tremendous shift in construction financing availability.

Over the past 6 weeks; several large lending institutions (that is, the ones that are still in business) have either rewritten the underwriting guidelines for these construction loans or have dropped the availability completely from their menus of loan programs.

Of course after closing on your “one-time closing” construction loan; the homeowner begins to make interest payments due based on the outstanding builder draws.  A typical build time period is 12, 15 or 18 months; and if you exceed this period there may be additional extension fees to be paid.  But since delinquency numbers were small; there was no realized loss.

Lately, due to the number of US home foreclosures; lenders have decided that the construction to permanent loans that required extended build times, were truly considered “delinquent”.  Well who wants to buy delinquent type mortgages even if they are strong borrowers with great credit scores and cash reserves?  The answer is not many investors.

We too are redeveloping how we structure these construction to permanent programs for our current Florida home buyers and their future referrals.  We will keep everyone up to date with construction loan availabilities as our research continues.  Please call or contact your mortgag eprofessional with any questions regarding Florida construction to permanent loans. 

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