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Build your own custom floor plan with Landmark!
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| Landmark works with people in a variety of credit situations. Many people have injured credit at some point in their lives. Sometimes this occured because they had been laid off, had unexpected medical bills or just plain had bad luck. We realize that situations sometimes cannot be avoided, so we are eager to work with people with injured credit situations. In fact, many of our customers have been rejected at other lenders and we certainly try with every customer to put them on track to get a home. Please remember that we offer very competitive interest rates. |
How Do Lenders Figure What I Can Afford?
| When reviewing the loan from the income side, the banker works with "debt ratios". These debt ratios are simply a safe percentage of your income that may be used to pay debt. Debt is considered to be bills such as car payments, credit cards, student loans, installment loans, etc. that you still have to pay on for more than 10 months. This does not include utility bills, groceries, car insurance, etc. The lender is simply making sure that by loaning you money you have an ability to pay it back and live comfortably. |
| These debt ratios are calculated as follows: |
| Family Monthly Income | $4,000 |
| Total Debt Ratio (40%) | * .4 |
| Total Monthly Debt | $1,600 |
The Family is capable of spending $1,600 per month on all their debt.
| Family Monthly Debt | $1,600 |
| Credit Cards | 75 |
| Car #1 | 225 |
| Car #2 | 200 |
| Money Available To Build | $ 1,100 |
| The lender would say that there is $1,100 available to cover the principle, interest, taxes and insurance on this home. We would calculate that at 6% interest, or the current rate, for 30 years, this family could borrow about $160,000 to build their home. Please remember, interest rates do change so we would have to quote you a rate when you apply for the loan. |
How Do Banks Work?
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People that are building new homes typically find that the most confusing process of obtaining their home is the financing. They have heard their friends talk about their experiences in obtaining loans. The big question is, "But can I get a loan?" Every lending institution is set up to appeal to a different type of customer. Some loan money to people with large down payments and excellent credit. Others lend money to people with less of a down payment with injured credit. Basically, it all boils down to how much risk the particular lender wants to take. When a lender analyzes risk, they can make two adjustments to the loan to counteract the risk. They can adjust the interest rate and/or equity position. A higher interest rate gives them additional payment for their risk. A larger equity position better covers their risk because of the customer commitment to the home. Equity positions can come in two forms. Some people have cash or they may own their lot. This poses a problem for people without cash. To help these families, Landmark has developed a program to give people credit for their "sweat equity" which is the value of the work they have done on their home. For most families it is easier to build their home in six months than to save $40,000 in six months. Take a look at our $1,000 Out of Pocket Financing Program. |
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When a lender "pre qualifies" a family they look at two situations. First is the credit side. Second is the income side. When a loan is reviewed from the credit side the lender is basically looking at how much credit a customer has had, as well as how a customer has paid their previous bills.They cannot predict the future so the best way to determine how a customer may pay their bills is to look at the past. According to their previous bill paying history from a credit report they rank the loan an A, B, C or D loan. Much like grade school, an A loan is the best and a D is not as strong. An A loan will have the best interest rate and equity position offered. Due to the increased risk a D loan will have a higher interest rate and possibly a higher equity position. |
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Yes, our construction loan can provide money for you to pay for the land you choose to build your home on. We can provide 100% of the land cost and wrap it in with the home mortgage to make it easier for you. We can also pay off land contracts or existing land mortgages.
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| It is getting more and more expensive to live, which makes it harder for families to save for their home. Landmark offers an extremely aggressive $1000 Out of Pocket financing program which eliminates the 5% to 20% down payment, plus closing costs, that banks typically request. This program gives families credit for the "sweat equity" they develop while they build their home. |
How Do I Find Out What I Can Afford?
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Landmark pre qualifies customers at no cost. All you need to do is fill out one of our pre-qualification authorization forms and fax or mail it to us. Even though you may have calculated the number yourself, we suggest that you have our lenders review your situation. After you pre qualify, we work with you to choose a home and develop a budget for you to build a home for your family. |
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There are two loans involved when building a home. First is the construction loan which pays money out while the home is being built. Second is the end mortgage which pays off the construction loan. This "end mortgage" is the one which you make a monthly payment to. Owner/Builder typically run into problems when they try to obtain a construction loan. Banks typically are not set up to work with Owner/Builders. Fortunately, Landmark works exclusively with Owner/Builders and offers a source for both construction and end loans. These loans are at competitive interest rates and offer many features, such as unlimited draws which make home building easier and save you money. Without a flexible and aggressive construction loan, your building process may not run smoothly. |
| The following is a list of features that our loans offer: | |
| 1. | As little as
Buys Your Land and New Home* |
| 2.. | 100% Land and Home Financing as one package |
| 3.. | Free Pre qualification |
| 4.. | No Payments during construction |
| 5.. | Bruised credit welcome |
| 6.. | Provide money for you to buy materials to finish home |
| 7. | You can be your own general contractor |
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Landmark's lenders are very experienced and highly trained to work with families in different financial can credit situations. Our financing may be the difference between you being able to build a home or not get a home. Landmark's financing is only available with the purchase of a Landmark Panelized Home Package.Loans are being approved daily to help Owners/Builders achieve their goals.
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