Construction Loan Offers Big Opportunity to Hawaii Land Buyers
Do you dream of building your own home? There’s nothing like building your home, exactly the way you want it with every custom detail in place, and building it exactly where you want it. But with the lending belt tightened in the past few years, many think the idea of buying land and building has been squeezed out. I’m excited to tell you, it’s not!
If you want to find that perfect piece of land and build your dream home, I can help make it happen for you! I just helped a client purchase 22 acres of land in Kaloko Mauka, and he’s currently in the process of doing what many thought was an impossible task with the current lending climate, building a home with a construction loan with minimal money down.
Island Mortgage Source Offers Construction Loan Too Good To Pass Up
Island Mortgage Source in Hilo offers a construction loan that just can’t be passed up. What’s different about their construction loan is they use the appraised value to determine the Loan to Value ratio, where most other lenders use the hard construction costs.
Island Mortgage Source goes up to 80% of the appraised value vs. 80% of the hard costs, and they’ll finance up to 100% of the costs! This is their standard construction loan and payments during the construction period can be optional. There is also the option of having the closing costs and construction loan payments added into the loan.
Owner Occupancy is required and the house must be built within 1 year. After the construction is done, the home is refinanced into a conventional loan. Other available options include refinancing into a VA loan, or a USDA loan for those that qualify.
The downside is that you’ll incur 2 sets of closing costs, but given that many people find it hard to find the perfect house on the perfect piece of land at a price they can afford, this may be well worth it. Plus, most of the time it’s cheaper to build a home than to buy one. Island Mortgage Source is one of the few lenders on the Big Island that offers this kind of loan.
Fantastic Opportunities to Purchase Vacant Land in Hawaii
1. This lot in Kona Vistas is graded and cleared, with all the amenities and close to town. It offers stunning ocean views and is listed for only $169,900 (MLS# 250568). The average sales price for homes sold in this subdivision within the last 6 months is $595,000.
Kona Vistas Subdivision
2. This prime ocean view lot in Keauhou Estates sits among million dollar plus properties in a beautiful gated community. Currently listed at $197,000, it’s the lowest price lot in the subdivision (MLS# 258661)…a tremendous opportunity awaits!
3. Perhaps a rainforest retreat is calling you? This 10 acre parcel in Kaloko Mauka offers seclusion and privacy, with the possibility of ocean views for only $278,000 (MLS# 250214).
Call me and I’ll you help find the perfect lot to build your investment on!