Finding difficulty to get construction loan

[Arun Kumar]

hi,

    I am finding difficult to get a construction loan, My idea to get construction loan is to buy the lot and built the home, I am first time home buyer. I got approved conventional loan but my bank says BIG NO NO for construction loan. 

If you know any private lenders for construction loan or FHA loan lender in Houston, Texas reply me.

 I spoke with three loan lender took all my information still waiting for there reply to get a loan.

Let me know if any one can help me buying or building the home with a FHA loan or construction loan in Houston area.

Thanks

Arun

[email protected]

[Bryan Hancock]

Don't be discouraged.  Shop around.  

Construction loans are generally in the domain of the small regional lender.  Don't waste your time dealing with the big banks.  I would try attending a small RE club in Houston and ask around for folks doing construction loans.  In the Austin area there are about 10 lenders that do these types of loans regularly.  There are others that do them, but those 10 or so really specialize more in construction loans.  

A lot also depends on your loan scenario.  Hiring an experienced GC will probably help your cause a great deal as will having plenty of cash to put down and to provide adequate liquidity post-close.  80% LTC is pretty typical right now with rates in the 5 - 7% range with 1 point origination.  You'll also need plans, specs, and costs to build for underwriting and for as-built appraisals.