Gateway Land Loans
- Minimum 25% down
- Minimum 700 credit score (720 if permanent loan is a Jumbo)
- Max loan amount is $250,000 (no minimum listed but I’ve heard it’s about $50,000)
- No underwriting fee, $500 processing fee, 1% origination fee
- Land must be used to build a 1-unit, owner occupied home at some point in the future
- Rates currently 6.5%+
- 20 yr. fixed rate amortization, with balance due at or before 2 years
- No rate buydown option available
Gateway One-Step Construction Loans
e quick hitters on the FNMA Homestyle Renovation Loan Program:
- No requirement to refinance the loan after construction is complete (most lenders will require this)
- Gateway will modify the loan instead of refinancing, saving the client ~$2,000+ in would-be costs
- If the lot is already owned, the construction itself can be treated like a refinance to start
- Minimum 5% down
= One payment, one loan. Not a second mortgage.
= Like the FHA 203k loan. However, this is a conventional product where you can do ANYTHING you want to the property, unlike FHA 203k.
= Shop for cheaper homes, where you can compete with less buyers and make it your own with renovations.
= If you are looking to upgrade to a bigger home, you can use this loan as a refinance.
= Carries a slightly higher rate than a regular purchase.
= Minimum 5% down for a purchase or up to 95% LTV on a refinance.
= Must have an approved contractor do the renovations (Not Uncle Kenny).
= Appraiser and contractor work together for initial “as is” estimate and then again once renovations are complete.
= Can be done as either a primary or a second home. single or multi-family home.
= Half of initial appraised value can be used for renovations.
o i.e., Home appraises at $300k, you can use up to $150k for remodel. Home will then be reappraised after renovation. Often appraises beyond the renovations.
= Any unused renovation money is put towards reducing your principle. Anything over budget is covered by the borrower.