[Gustan Cho]

Ramon, the best person to answer is Chad Bush. Chad Bush is a dually licensed realtor and loan officer. Chad and his wife own a house in Orange County California which is mega bucks homes. Young couple both working full time. Also, check out the California Mortgage Calculator.

https://gustancho.com/california-mortgage-calculator/

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California Mortgage Calculator | How Much House Can I Afford

The California Mortgage Calculator will get you the most accurate monthly mortgage payment which includes the PITI, MIP, and DTI

[Gustan Cho]

California Governor Gavin Newsom presents details of his budget for 2024. The state is facing major budget deficit due to poor leadership and incompetent politicians starting from the top, which is the Governor’s Office. Gavin Newsom proposed and set some DUMB DUMB new laws and regulations which is ruining the economy of California. Gavin Newsom bright genius idea of increasing minimum wages to $20 per hour for for fast food workers is backfiring on him. Hundreds of restaurants are either fleeing the state, or closing their restaurants, or going bankrupt. Restaurants are firing thousands of workers and replacing them with robots and other solutions because the minimum wage increase is not within their budget. Newsom’s genius ideas is backfiring in more than one way. After implementing electric cars, the state suffered loss of revenues from the Gas Tax. The idiot Governor then proposed a $0.30 cents a mile transportation tax. Newsom is facing major economic crisis because of the tens of thousands of people and businesses Fleeing the state of California due to high cost of living, high taxes, high home prices, too much regulations that make it impossible to do business in the state, and ridiculous far left liberal ideology.

https://www.youtube.com/live/AZbjRpJJfbc?si=rwdqJEz9YM0SRjZ3

[Gustan Cho]

I grew up in Illinois since 1973. My family moved to Mt. Prospect, Illinois where I went to grade school, junior high school, high school and college. Moved to Scottsdale, Arizona, and Los Angeles, California due to work but eventually returned to Illinois. Purchased a two-unit multi-family house in Chicago’s North Park neighborhood. In 2000, I purchase a single-family home on one acre in South Barrington, Illinois and in 2002, I purchase a larger 20,000 square ft. home on 5 acres in Barrington Hills, Illinois. Then in 2009, I moved to Kenosha County, Wisconsin on a 5,900 square feet 7 acre home. The Chicagoland area will always be home but there are a lot of difference between living in Illinois and Wisconsin. First and foremost, traffic is much lighter at all times of the hour. Taxes are substantially lower. People are nicer. You get a lot more house for the money. There are more scenic places and lakes for entertainment. However, you cannot beat the ethnic people, shops, and restaurant in Illinois over Wisconsin. Chicago and its surrounding suburbs is home to the best ethnic groceries, restaurants, and shops that is probably the best in the nation. I live on the border of Wisconsin and Illinois. Whenever I need to find an ethnic restaurant such as Chinese, Polish, Indian, Mexican, or Korean, I need to drive south of the border into Illinois to find the best ethnic food eateries and grocery stores. There are pros and cons if you compare living in Wisconsin versus Illinois. You get a lot for the money in Wisconsin. Affordable housing, rent, cost of living, cost of goods and services, lower state income taxes, lower sales taxes, lower property taxes, and a lot more house for the money. Wisconsin has the best higher education system compared to Illinois. The University of Wisconsin in Madison is one of the best schools of higher learning in the nation. There are over a dozen state universities of the University of Wisconsin in the state and each campus has affordable tuition, room and board, and a great curriculum recognized by national and global institutions of learning. The state has a great landscape and picturesque lakes. Wisconsin Dells has the nations largest and well known waterparks attracting tens of thousands of visitors every year. My office is in Oakbrook Terrace, Illinois which is a one hour drive from my residence.

https://gustancho.com/mortgage-with-unpaid-collections-in-wisconsin/

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Mortgage With Unpaid Collections in Wisconsin

Homebuyers can qualify for a mortgage with unpaid collections in Wisconsin. Borrowers do not have to pay off outstanding collections/charge offs

[Gustan Cho]

Thank you for asking your question. This is a frequently asked question at GCA Mortgage Group and Gustan Cho Associates, so it will help out many of our viewers and first-time homebuyers. Congratulations on moving from Minneapolis to Allentown, Pennsylvania, and on the new job! Let’s talk about buying a house and getting a mortgage as a first-time homebuyer, emphasizing low—or no-money-down options and programs available in PA.

Step 1 on the homebuying and getting pre-approved journey:

• Evaluate Your Finances.
• Check your credit score and report.
• Calculate your debt-to-income ratio.
• Figure out how much you can afford for monthly payments.

Check out our best mortgage calculator powered by Gustan Cho Associates: https://www.gustancho.com/best-mortgage-calculator

Step 2:

• Look Into First-Time Homebuyer Programs
• Pennsylvania has many programs for first-time homebuyers.
• PHFA (Pennsylvania Housing Finance Agency) First-Time Homebuyer Program.
• Offers low-interest mortgage loans.
• Down payment and closing cost assistance grants.
• Requires completion of a homebuyer education course.

Keystone Home Loan Program:

• Competitive interest rates.
• It can be combined with a down payment and closing cost assistance grants.

Keystone Government Loan Program:

• This is specifically for FHA, VA, and RD loans.
• Offers down payment and closing cost assistance grants.

Keystone Advantage Assistance Loan Program:

• Provides second mortgage loan up to 4% of purchase price or appraised value (whichever is lower) for down payment and closing cost assistance grants.

HOMESTEAD Down Payment and Closing Cost Assistance Loan:

• Offers up to $10,000 in down payment and closing cost assistance grants

Step 3: Federal Loan Programs

FHA Loans:

• Down payment as low as 3.5%.
• More lenient credit requirements.
• Borrowers can have credit scores down to 500 FICO.
• Borrowers with credit scores under 580 FICO require a 10% down payment, compared to 3.5% for homebuyers with at least 580 credit scores.

VA Loans (for veterans and active-duty military):

• No down payment is required.
• No private mortgage insurance.

USDA Loans:

• No down payment is required.
• For rural and some suburban areas.
• Maximum debt-to-income ratio: 29% front-end and 41% back-end.

Step 4: Get Pre-Approved for a Mortgage

• Collect necessary documents (pay stubs, bank statements, tax returns).
• Choose lender(s) to apply for pre-approval with one or more lenders.
• Receive a pre-approval letter stating how much you can borrow.

Step 5: Find a Real Estate Agent: Look for an agent who knows Allentown well and has experience working with first-time buyers.

Step 6: Begin House Hunting

• Determine your needs vs wants in a home.
• Visit homes within your price range.
• Consider commuting to work from the new home.

Step 7: Make an Offer on Your Dream Home

• Your agent will guide you on what is considered a fair offer.
• Negotiate terms with the seller if needed.

Step 8: Get the House Inspected

• Hire a professional home inspector to check the property’s condition.
• Review inspection reports and negotiate repairs as necessary.

Step 9: Finalize Your Mortgage Application:

• Provide additional documentation requested by the lender(s).
• The lender orders an appraisal of the property.

Step 10: Review and Sign Closing Documents

• Thoroughly read all documents before signing.
• Bring certified funds for closing costs/down payment.

Step 11: Close on Your New Home!

• Attend closing meetings, sign the final paperwork, and be handed keys to a new home.

Additional First-Time Buyer Tips in PA:

• Take advantage of homebuyer education courses offered through PHFA or HUD-approved counseling agencies.
• Consider the Mortgage Credit Certificate (MCC) program for a potential tax credit of up to $2,000 per year.
• Research employer-assisted housing programs, as some Pennsylvania employers offer down payment assistance.
• Check with the City of Allentown for local first-time homebuyer programs or incentives.
• Be prepared for property taxes, which can vary greatly depending on the county/municipality in PA.
• Factor in the cost of homeowners insurance, which may be higher due to flooding or other risks in certain areas.

Begin the procedure early because collecting papers and getting permission takes time. It is also important to involve experts who know about Pennsylvania’s legislation and schemes.

gustancho.com

Best Mortgage Calculator | PITI, PMI, MIP, and DTI

We are at Gustan Cho Associates, You easily check your mortgage eligibility with the best mortgage calculator With PITI, PMI, MIP, HOA, and DTI.

[Gustan Cho]

Overview of the Pennsylvania Housing Market

Forecast for the Housing Market

Pennsylvania’s housing market is growing steadily, with a moderate increase in home prices. The main factors contributing to this development are the stable economy, relatively cheap living costs, and rising demand for suburban and urban areas.

Average Prices of Homes: According to recent data, an ordinary house in PA costs around $240,000, which may vary widely depending on location.

Cities With Best Value and School Districts

Best Bang-for-Your-Buck Cities

Pittsburgh:

• Housing: Affordable compared to other major cities; its median price is approximately 220k dollars.
• Economy: The city has a diverse economy with strong healthcare, education, and tech sectors.
• School Districts: The schools here are highly rated, especially in suburbs like Mt. Lebanon and Upper St Clair Township.

Harrisburg:

• Housing—The Median home price is around $180k, offering good value for money when buying residential properties within this area code.
• Economy -The government employs many people, and the service industry also thrives here, thanks largely to its strategic location along the I-83 corridor.
• This connects Baltimore, MD, with Scranton, PA, through the Harrisburg metropolitan area.
• Thus making easy access possible between these two states and the rest of the parts of the northeastern US.

School Districts: Cumberland Valley & Central Dauphin are some schools worth mentioning because they have excellent academic performance records over the years past.

Allentown:

• Housing — Median cost of about 220 thousand dollars.
• Economy—It has growing manufacturing industries and healthcare services, including logistics, used by companies like Amazon.
• School districts—Parkland East Penn school districts top the rankings based on their educational quality levels achieved so far while serving local communities’ needs best, according to them. The next closest rival district, Bethlehem Area S D, etc., follows closely behind.

Lancaster:

• Housing — The median price is 240k dollars, which is quite affordable for most families.
• Economy—Agriculture is the backbone activity supported strongly by healthcare manufacturing sectors, which are equally important since they provide job opportunities for many residents who need to meet daily requirements.
• School districts—Manheim Township Hempfield schools rank high up there among the best-performing ones across the county region, as far back as records can recall, indeed without any doubt whatsoever.

Home Prices Compared to National Average

The numbers show that houses in Pennsylvania cost less than the national average. This could make it an attractive place for someone who wants to buy a house but doesn’t have much money.

Economy and Job Market

• Pennsylvania has a diverse economy with strengths in healthcare, education, manufacturing, and technology.
• Philadelphia and Pittsburgh are major job markets, while Harrisburg also stands out.
• Unemployment rates are usually near or at par with US figures on average annually recorded over the past years.

Cost of Living and Taxes

Living costs are generally lower than nationwide due to cheaper housing options available within state lines.

Taxes: Commonwealth PA levies a flat tax rate of 3.07% on each income category. There is also a heavy property tax burden, particularly in suburbs boasting top-notch school districts.

Family-Friendliness and Relocation Considerations

• Families relocating to Pennsylvania will find many communities that cater to their needs.
• Pennsylvania has good schools, low crime rates, plenty of parks and recreational facilities, etc.
• Those looking for affordable homes should consider moving here.
• Given stable employment opportunities and lower living expenses than elsewhere in America today.

States People Are Moving From to Pennsylvania

• Many people are migrating to Pennsylvania from states with higher living standards, such as NY, NJ, CA, etc.
• They do so because Pennsylvania offers relatively cheap living coupled with quality.
• Greatest municipalities have small crime percentages plus low-priced houses.

State College:

Crime Rate: Very Low.

Housing: Around $290,000 is the median cost of a home.

Economy: Predominantly Penn State University-based.

Schools: Good school district.

Emmaus:

Crime Rate: Very Low.

Housing: Around $260,000 is the median cost of a home.

Economy: Close to Allentown with access to many different job markets.

Schools: East Penn School District.

Wyomissing:

Crime Rate: Very Low.

Housing: Around $280,000 is the median cost of a home.

Economy: Reading is nearby, which provides employment opportunities.

Schools: Highly ranked Wyomissing Area School District.

Doylestown:

Crime Rate: Very Low.

Housing: Around $400,000 is the median cost of a home.

Economy: The local economy is strong, with the healthcare and education sectors being the dominant employers in this region.

Schools: Central Bucks School District.

Upper St. Clair:

Crime Rate: Very Low

Housing: Around $350,000 is the median cost of a home.

Economy: Suburb of Pittsburgh with access to various job markets within driving distance from here.

Schools: Upper St.Clair School District

The Keystone State has many attractive options for those shopping around for houses. This holds especially if they want good schools, stable employment, and affordable living. With its lower standard of living coupled with diverse industries, Pennsylvania should be a top priority for any person hoping to move or settle down. However, it’s worth considering that specific needs might necessitate evaluation among different cities or regions within PA.

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Pennsylvania Mortgage Calculator With PMI and DTI

Calculate monthly payment on FHA, VA, Conventional, Jumbo, and Non-QM loans using GCA's Pennsylvania Mortgage Calculator with PMI and DTI

[Gustan Cho]

Sure. The rule of net tangible benefit (NTB) is one of the important guidelines of HUD, the parent of FHA, for streamlining refinance loans. It was formulated to ensure that a borrower gets real benefits from refinancing their existing FHA-insured loan. Let us examine this further:

Objective Of Net Tangible Benefit Rule:

• Safeguarding borrowers against unnecessary refinancing.
• Preventing predatory lending practices.
• Ensuring there are clear financial gains for the borrower.

Key Requirements: Combined Rate Reduction:

• The new combined rate (interest rate plus annual MIP rate) should be 0.5% lower than the combined rate on the current mortgage.
• For instance, if your present interest is 4% with an annual MIP of 0.85% (totaling 4.85%), then your new interest should be at most 4.35% (3.5% + 0.85%).

Term Reduction:

• Whereby, if a shorter term is chosen for a new mortgage, its combined rate must stay within the existing mortgage’s by more than two percentage points.

Total Mortgage Payment Reduction:

• The new total mortgage payment, comprising principal, interest, and MIP, ought to be at least 5% less than the previous one.

Additional Considerations:

Seasoning Requirements:

• At least six monthly payments must have been made on the borrower’s current FHA-insured loan.
• At least six full months should pass between the first payment date due under the mortgage and the closing date of the original one being replaced.
• A minimum of two hundred ten days must have elapsed since the initial closure date for the mortgage being refinanced through a streamlined refinance transaction.

Payment History:

• All monthly installments for any twelve-month period prior to case number assignment need to be paid within the month they are due.
• One late payment not exceeding thirty days during the last twelve months.

Maximum Mortgage Amount:

• The maximum mortgage amount is limited to the outstanding principal balance of the original loan being replaced and sixty days’ interest together with UFMIP.

Documentation:

• Lenders are required to document and keep evidence of net tangible benefit (NTB) to borrowers.
• Normally, this includes comparing terms between existing mortgages and proposed new ones.

Exceptions: Refinancing an adjustable-rate mortgage (ARM) into a fixed-rate mortgage is exempted from the 0.5% point reduction requirement but still should meet NTB in other ways.

Importance For Borrowers: Makes sure that refinancing is truly beneficial not only for generating fees by lenders

Enables borrowers to avoid moving into even worse financial positions through refinances.

Sets clear yardstick against which possible advantages of refinancing can be assessed

Lender Responsibilities:

Lenders must carefully evaluate and document NTB for every streamlined refinance and certify that their loan satisfies HUD’s FHA Streamline Refinance Loans requirements.

Failure may attract penalties or sanctions against them

Potential Benefits To Borrowers:

• Lowering monthly payments.
• Reducing interest rates charged on loans.
• Shortening loan durations.
• Moving from adjustable rate mortgages (ARMs) to fixed-rate ones.

It should be remembered that while the rule provides a standardized method for evaluating benefits, people should look at their financial situations and long-term plans before deciding whether or not to refinance their homes. This means minimum levels are required, but a refinance could still be unfavorable depending on individual circumstances.

[Gustan Cho]

One-Time-Close (OTC) New Construction Loans on Conventional Loans

How It Works

A One-Time-Close (OTC) New Construction loan finances both the construction of a new home and the permanent mortgage after construction is completed. This loan type combines the construction loan with the permanent mortgage into one loan, which means there is only one closing, reducing closing costs and streamlining the process.

Eligibility Criteria

Credit Score: A minimum credit score of 620 is normally required, but some lenders may have higher requirements.

Income and Employment: Steady employment history with stable and sufficient income.

Debt-to-Income Ratio (DTI): Lenders usually allow a DTI ratio of up to 45%, but sometimes, up to 50% might be accepted if strong compensating factors exist.

Down Payment: Typically between 5% – 20% depending on lender/borrower creditworthiness.

What You Can Build

The following can be built using OTC New Construction Loans:

• Single-family homes
• Multi-family homes (up to 4 units)
• Modular homes
• Manufactured homes (with some restrictions)

Mortgage Process

Pre-Approval: Get pre-approved by your lender to know how much you can borrow.

Choose a Builder: Pick out an approved licensed builder for your project.

Loan Application: Fill out a loan application and the plans and specifications for your new home.

Appraisal: An appraiser will assess what they believe will be worth once completed and built!

Closing: Close on both construction loans & permanent mortgages at once!

Construction Phase: As each stage progresses, funds are released to the builder in stages, who uses them accordingly until completion, when this becomes unnecessary as everything has already been paid off.

Completion: Once complete, this converts into a regular mortgage, so there’s no need for another closing!

Down Payment Requirements

Standard Conventional Loans typically require a down payment of between 5% and 20%; however, some programs may allow for lower down payments with private mortgage insurance (PMI).

Credit Score Guidelines

Minimum Credit Score: Typically 620 but can be higher depending on lender requirements for better terms.

Debt-to-Income Requirements

Maximum DTI: Usually 45%, but higher ratios might be permitted if compensating factors exist.

Types of Properties

• Single-family residences
• Multi-family units (up to 4)
• Modular and manufactured homes (subject to lender restrictions)

Additional Considerations

Builder Approval: The builder you choose must get approved by your lender before any work begins!

Construction Timeline: Construction should typically be completed within a year or so at most to save money and avoid paying extra interest!

Interest Rates: Interest rates can either stay fixed throughout the loan period or fluctuate according to market conditions; they might also differ during the construction phase compared to permanent ones.

OTC New Construction Loans offer borrowers a hassle-free process when building their dream home as they only have one closing, thus saving them time and money. However, you must deal with an experienced OTC lender who will help guide you through these steps and ensure everything runs smoothly from start to finish.

[Gustan Cho]

Buying a Two-to-Four Unit Multi-Family Home: Mortgage Loan Guidelines

HUD Guidelines on Two-to-Four-Unit Multi-Family Homes on FHA Loans

Rules:

Down Payment: 3.5% of the purchase price.

Credit Score: Min 580 for max financing; 500-579 requires 10% down.

Occupancy: Must occupy one of the units as a primary residence.

Loan Limits: Varies by area, higher for multi-family properties.

Debt-to-Income Ratio (DTI): Typically 46.9% front-end and 56.9% back-end with an automated underwriting system approval. 31% front-end, 43% back-end on manual underwriting with no compensating factors, 37% front-end and 47% back-end with one compensating factor with manual underwriting, and 40% front-end and 50% back-end with two compensating factors.

Reserve Requirements: Typically, two to four months of PITI (Principal, Interest, Taxes, and Insurance) are required for two—to four-unit properties.

Eligibility Requirements:

Property Condition: Must meet FHA standards.

Income: Steady employment and income history.

Creditworthiness: Good credit history.

VA Guidelines on Two-to-Four Unit Multi-Family Homes on VA Loans

Rules:

Down Payment: None required.

Credit Score: No specific minimum, but lenders usually prefer 620+.

Occupancy: Must occupy one of the units as a primary residence.

Loan Limits: Generally, there are no loan limits, but limits may apply for no-down-payment loans.

Debt-to-Income Ratio (DTI): Typically 41%, but a higher DTI may be acceptable with high residual income.

Reserve Requirements: Not typically required, but some lenders may ask for reserves for multi-family properties.

Eligibility Requirements:

Service Requirements: Must meet VA service eligibility requirements. Certificate of Eligibility (COE): Must obtain COE from VA. Creditworthiness: Good credit history

USDA Loans

Rules:

Down Payment: None required Credit Score: Minimum 640 for streamlined processing Occupancy: Must occupy one of the units as a primary residence.

Loan Limits: Based on area income limits and property value.

Debt-to-Income Ratio (DTI): Typically 29/41% (front-end/back-end).

Reserve Requirements: We may require reserves depending on the lender and property type.

Eligibility Requirements:

Location: The property must be in an eligible rural area. Income: Must meet income eligibility requirements based on area median income.

Creditworthiness: Good credit history.

Fannie Mae and Freddie Mac Guidelines on Two-to-Four Unit Multi-Family Homes on Conventional Loans

Rules:

Down Payment: 5% depending on lender and borrower’s credit profile.

Credit Score: Min 620, but higher scores are preferred for better rates.

Occupancy: This can be used for a primary residence, second home, or investment property.

Loan Limits: Vary by area, higher for multi-family properties.

Debt-to-Income Ratio (DTI): Typically 45%, but a higher DTI may be acceptable with compensating factors.

Reserve Requirements: Typically, six months of PITI for each unit.

Eligibility Requirements:

Income: Stable and sufficient income history. Creditworthiness: Good credit history. Property Condition: Must meet conventional lending standards.

Summary

FHA Loans are great if you have a low down payment and moderate credit score – they also require that the place be your primary residence. VA loans work best with veterans who don’t want to put any money down; these, too, must be occupied as primary residences. USDA mortgages might suit eligible rural area properties without needing down payments while still enforcing them to remain primary residences. These credits do not offer much variety in occupancy options because they primarily focus on single-family homes until four units fall under this category.

Each loan program has specific guidelines and eligibility requirements. FHA, VA, and USDA loans are generally more accessible for primary residences with lower down payment requirements. Conventional loans offer more flexibility but often require higher down payments and credit scores. Assessing your financial situation and goals can help determine the best loan program for purchasing a two-to-four-unit multi-family home.

[Gustan Cho]

I am happy to explain the VA One-Time Close (OTC) New Construction Loans extensively.

What is a VA OTC New Construction Loan?

A VA Construction-to-Permanent loan, or a VA One-Time Close Construction Loan, combines a construction loan with a traditional VA mortgage. It allows eligible veterans and active-duty service members to fund the construction of their new home and its permanent mortgage through one loan closing.

How do VA One-Time-Close New Construction Loans work?

• The same loan covers the long-term mortgage and the construction phase.
• This means you only close on the loan once before construction starts.
• You usually make interest-only payments for the amount drawn during construction.
• After completing construction, the loan converts to a permanent VA mortgage automatically.

Eligibility Requirements:

VA Loan Eligibility: Must have a valid Certificate of Eligibility (COE).

Credit Score: Usually minimum 620; however, no minimum set by VA (lender requirements vary)

Income: Income must be stable enough to cover mortgage payments and other obligations.

Debt-to-Income Ratio:

• There are no maximum debt-to-income ratio caps on VA loans.
• However, lenders have overlays on the debt-to-income ratio on VA OTC NEW CONSTRUCTION Loans, generally up to 41%, but with compensating factors, it can go higher.
• Owner-occupied primary Residence required.
• The property should meet VA standards as well as local building codes.
• Must use a licensed general contractor approved by the VA.

Qualification Process:

Obtain a Certificate of Eligibility (COE)

Meet credit score requirements set by the lender

Show stable employment history with income sufficient for repayment of debts, including proposed housing expense and all other recurring charges such as taxes or insurance premiums against which borrower will not receive compensation from another party.

Have a debt-to-income ratio within acceptable limits;

Choose an approved lender under this program who offers such loans.

Select a licensed general contractor experienced in new residential construction techniques who has agreed in writing to build according to plans developed jointly with the borrower’s architect if applicable, but at least meet minimum code requirements for safety purposes only without regard to aesthetic considerations where there may be more than one acceptable method available provided each method complies fully with applicable laws and regulations including those relating to energy efficiency or accessibility standards.

Provide detailed plans showing lot size, setbacks from property lines, floor area ratio calculations based on zoning district requirements, and any other relevant data the lender requires.

Mortgage Process Steps:

Pre-qualification: Initial assessment of eligibility

Obtain a Certificate of Eligibility

Choose a contractor and finalize building plans

Loan application: Formal application with required documents submitted for approval by the underwriter at the lending institution.

Property appraisal: This is based on plans and specifications provided by the borrower, showing all proposed improvements along with estimated costs.

Underwriting: The lender reviews all aspects of the application package, including but not limited to credit history check, employment verification, etc., before making a final decision on whether or not to approve the request for financing.

Loan approval: If approved, receive a commitment letter indicating the amount approved, terms, conditions, etc.

Closing: Sign loan documents (typically no down payment required), which include a promissory note evidencing promise to repay the sum of certain money advanced plus interest thereon according to its terms together with such security instrument as may be necessary to create a valid first lien against the real property being financed hereunder subject only those exceptions stated within policy issued by title insurer insuring said lien position; Construction phase begins after closing has occurred followed after that periodic inspection during construction draw taken borrower accordance methods agreed upon between general contractor lender representative once progress achieved per the schedule agreed upon between parties signifying completion each milestone. The final inspection takes place upon satisfactory completion of work. All units have been inspected and found to comply with fully applicable codes, laws, and regulations regarding safety, health, welfare, and occupants’ structures, which generally accepted good practice trades involved in their construction maintenance.

Conversion: VA OTC New Construction Loan converts VA permanent mortgage loan.