Permanent Close Construction Loans in SF Bay area?
auroraborelis
12 years ago
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pbx2_gw
11 years agolast modified: 9 years agoUser
11 years agolast modified: 9 years agoRelated Discussions
SF Bay A Subtropical Area?
Comments (44)Stan, Don't believe everything you see on television, especially with regard to average winter temps in Capetown and the Cape of Good Hope. They can and do get some frost there occasionally, as they have varied microclimates due to elevation and topography. wind is also much more a factor there, and weather is very inconsistent on a day to day basis as they do get cold fronts off the Antarctic as well as the Atlantic. From my observations of what is growing well in Capetown, I would say the climate is most similar to San Diego in general, but with more winter rains, and 80F is not a typical long term average daily high in winter there. I visited over a 6 week period in the Western Cape in August/September, and the weather was very much like what we get here in the SF Bay Area in mid to late spring. You needed a jacket on many days, there was typically driving windy days alternating with warmer ones, and there was snow on the mountains in back of Capetown above 5000 foot elevation, although it didn't last for more than a week at a time. Even the subtropical parts of coastal eastern South Africa can also get the occasional frost, and has, so don't believe that it never gets down to freezing along the coast from perhaps Port Elizabeth west to Capetown. As you get to Durban and points east/north, it is distinctly subtropical with no frost, unless you get inland and up into the mountains. Not really safe to generalize about South Africa unless you live there or look up the climate records... And Capetown does get their local equivalent of Santa Ana winds which result from compressed, heated air descending from the interior mountainous plateau when they get offshore wind conditions. The hot drying winds or the cold onshore winds can be really hard on gardens in Capetown, and large leafed tropicals that need lots of water fair poorly there in such events, and water is costly to provide....See MoreConstruction loan questions
Comments (7)I'm in PA also and lenders in my region of the state are still only considering giving mortgages to those who can cough up 20% cash against the cost of the house constuction IN ADDITION TO the value of the land being fully paid for completely. Example: If one owns a free-and-clear-paid-for $40,000 lot and wants to build a 300,000 house, the lenders are STILL requiring 20% of $300,000 or $60,000 cash down PLUS the FULL LOT VALUE ($40,000) as collateral against the mortgage. Doctors, Lawyers, Accountants and other professionals are having a hard time qualifying for mortgages under these terms and few builders are building because their clients can't qualify because of the tight banking regulations. If you are NOT in this exclusive club and can NOT afford more than 20% down and have a free-and-clear lot....then you don't stand any chance right now of getting a mortgage in Pennsylvania under most circumstances.... Sorry....See MoreConstruction loan...does this sound right?
Comments (7)I'm no expert but based on the fact that mortgage rates are currently at near historic lows and the government is pumping billions of dollars of new money into the economy (all those stimulus package bailouts), I think we're going to start seeing inflation VERY soon - double digit inflation in fact. If so, mortgage loan rates will rise with inflation. My personal suspicion is that your banker also foresees inflation coming and he doesn't want you to lock in today's low rates by getting a one-time close loan because such loans are very tough on the lenders. Your banker may look for the "best rate" available for you when your construction is done, but I strongly suspect that "best rate" won't be nearly as good as what you can lock in right now with a one-time close. Keep in mind that your loan is a business transaction for the bank. The bank wants to make money off of it and your banker has the bank's best interests at heart, not yours. As for possible over-runs in costs, if you're doing a "fixed price build", the only cost over-runs should be from "change orders" and I highly recommend paying for any and all change orders "out of pocket." That is one sure-fired way to keep yourself from going overboard on changes. LOL!...See MoreConstruction/Mortgage Loan
Comments (12)We had a construction loan from one bank and then did the mortgage loan with our credit union. The credit union actually call the mortgage loan a "refinance" which saved us a few $$$ On another note about saving a few $$$ if you can take your loan out as "bi-weekly" you would save a tremendous amount over the life of the loan....you would be making a payment every two weeks which adds up to two extra payments a year. Doesn't cost any extra to set the loan up that way and you can still keep it within your budget or what you planned to spend monthly. It's something the banks don't really advertise. Good Luck...See Morepbx2_gw
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