The Dollars and Sense of Student Loans: The Economics of FFEL and Private Loans
Things You Should Know About Private Construction Loans
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Transcript of Things You Should Know About Private Construction Loans
Location
• Key to securing your private money construction loan
• It is important that your lender is comfortable with your project’s location
Project Planning
• Key factor on your construction loan approval
• Cover every detail of how your completed project will turn out
Project Planning
• have a reliable and qualified contractor
• formulate a budget to ensure the completion of your project
Skin in the Game
• have your own money readily available as a financial backing
• lenders may approve funding to as much as 70 percent loan-to-value of the appraised value.
Down payment
• Ask about down payment requirements for your project
• May be 0 down payment or may be 10%; depending on the lender
Rates and fees
• Vary from lender to lender
• Show your lender the profits that they can make
• Fees are higher than the traditional lending institutions