The new Non-QM Single Close Construction Loan can be used to finance up to 90% of a borrower’s home construction for loans up to $2 million. The program is for borrowers who do not qualify for new construction financing through standard income qualifications. Instead, a borrower’s income can be qualified through 12 to 24 months of bank statements, or on a debt service credit ratio (DSCR) basis using the expected rents on an investment property.
The program was designed to give more borrowers the green light to financing that fits their needs while providing simplicity, speed and flexibility, said GO Mortgage CEO Michael Isaacs. “Too often, our loan officers were encountering clients who could afford to build, but do not qualify through conventional means or were discouraged by the complicated nature of construction lending,” Isaacs said. “Our new program solves both of these issues, so that any self-employed borrower, business owner or private investor can achieve their homebuilding goals and isn’t left standing on the sidelines.”
