Tear Down construction loans allow for a property to be cleared of an existing home, and other structures to prepare the property to build a new residential home. The loan is designed to work like a construction loan, but can include the demolition, debris removal, and clean up.
The Tear Down construction loan has to be done with special consideration to the value of the land without the current structures. The project must be broken down and reviewed with a complete set of new house plans, construction budget, and plan and speculation appraisal. The down payment requirements, loan-to-value (LTV), and loan-to-cost (LTC) values can only be determined after an appraisal has been reviewed to determine the value of the land.
The challenge is that an existing structure, if removed from the property, can decrease the value and must be balanced by the value of the new construction, total cost to tear down, and the total cost to build the new house.
Speak with a Construction Loan Specialists now: (888) 590-7466
TEAR DOWN CONSTRUCTION LOANS 620 minimum credit score
Fully Documented Loan and Stated Income/Verified Assets Approvals
Charter Funding Construction Loans
5825 Avenida Encinas, Suite 101
Carlsbad, CA 92008
(888) 590-7466 office (760) 439-2619 fax www.cfconstructionloans.com
