Contractor Hector
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Dear Melissa,
Thank you for reaching out to Gustan Cho Associates. We’re glad to help you explore mortgage options for the home at 374 N Walnut St in Columbia City, IN.
Our goal is to keep your total monthly housing payment around $2,000, and ideally below $2,400. We’re also looking for ways to lower your closing costs.
We work with borrowers who may have high debt-to-income ratios, credit challenges, or need manual underwriting. We partner with several wholesale lenders and can offer FHA, VA, USDA, conventional, and alternative loan options.
Here’s what our team will review:
- Monthly payment: We’ll look at loan programs, interest rates, discount points, taxes, insurance, and any repayment needed for down payment assistance.
- Cash to close: We’ll check for down payment assistance, eligible grants, and seller concessions that could help.
- Eligibility: Conventional, FHA, and USDA financing are available, and we’ll also consider any needed appraisal repairs.
- Credit and income: We’ll review your retirement and Social Security income, current debts, and any past auto loan charge-offs. Before we look at financing options, we’ll make sure the property qualifies for the right mortgage program and that the payment fits your budget.
To get started, please send us your current Ruoff Mortgage Loan Estimate or payment statement, your preliminary approval, and any property details you have. After that, we’ll set up a secure way for you to send your mortgage documents. Our assistant Marga Jurilla and the rest of our team will support you every step of the way. Once we review your information, we’ll discuss financing options that fit your needs, provide estimates of your monthly payments and cash-to-close, and guide you through any additional underwriting or property requirements. We’re available during the week, as well as in the evenings and on weekends.
We look forward to helping you and your family with your new home purchase.
NMLS 873293
Branch Manager | Gustan Cho Associates
A DBA of Coast 2 Coast Mortgage Lending, LLC
NMLS 376205-
This reply was modified 1 week, 4 days ago by
Sapna Sharma.
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I am meeting with the realtor tomorrow to discuss it all and have the real estate purchase contract ready to be sent to you. Thank you for the explanation and clarification about the rate and points.
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Good morning, Gustan,
Good morning, Marga,
What will be my VA rate, and how many points? Concerning my pre-approval letter.
Best Regards
Julio M.
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New construction loans, also referred to as construction-to-permanent or one-time close loans, enable you to finance the construction of your home and subsequently transition to a standard mortgage upon completion. With a single closing, this structure reduces both costs and exposure to interest rate fluctuations.
If you already own the land, your construction loan usually covers most building costs. Land ownership can serve as collateral and help you secure a down payment.
There Are Several Main Types Of Construction Loans
- The One-Time Close loan, also called Single-Close or Construction-to-Permanent, requires one application and closing, resulting in a single set of fees.
- Funds are released in stages as construction progresses.
- The loan converts to a standard 15- or 30-year mortgage upon completion.
Two-Time Close New Construction Loan
The Two-Time Close option requires an initial construction loan followed by a separate permanent mortgage. While this approach offers more flexibility, it usually results in higher costs and greater exposure to interest rate changes.
A Construction-Only loan is a short-term option, typically lasting 6 to 18 months, and must be repaid or refinanced after project completion.
This option is generally less attractive. For investment properties, lenders require higher down payments (often 20% to 30% or more), increased equity, higher mortgage rates, substantial cash reserves, detailed rental income projections, and stricter credit evaluations. Many lenders do not offer construction loans for investment properties.
United Wholesale Mortgage One-Time Close New Construction Loan
UWM offers One-Time Close New Construction loans for most projects, with 15- or 30-year fixed-rate and high-balance mortgage options for both primary residences and investment properties.
- Key requirements include a minimum FICO score of 620 and the option to borrow up to 95% of the home’s value, depending on your situation.
- The construction phase usually lasts 11 months.
- Loan amounts are capped, with limits expected to reach $832,000 for single-family homes in most regions by 2026.
- Since UWM works through brokers, you must use an approved broker.
- Even with a 660 FICO score, additional conditions may apply for investment properties or smaller loans unless UWM grants an exception.
- All-in-one construction loans are also available for investment properties.
- If you seek a loan between $80,000 and $90,000 through a broker, expect special conditions to apply.
Summary
For an $80,000–$90,000 loan with a 20% down payment and a 660 FICO score, the down payment usually meets lender requirements and may reduce or eliminate private mortgage insurance (PMI). Full land ownership increases equity and strengthens your application. While a 660 FICO score is slightly below the preferred threshold of 680 for many lenders, strong land equity, a low debt-to-income ratio, and a reputable builder may enable approval for an investment property loan with a score between 620 and 660.
Loan Size:
- Most lenders require a minimum construction loan amount of $100,000 to $150,000 due to processing costs and risk.
- Some private or hard-money lenders may accept smaller loans, but these usually come with higher interest rates and fees.
- A loan of $80,000 to $90,000 is considered small, as most lenders require minimums of $100,000 to $150,000.
- Lenders assess the appraised value, which includes both land and construction costs.
- With 20% equity, borrowing $100,000 to $112,000 for the entire project may be feasible.
- Detailed construction plans, permits, and a qualified builder are required.
- Construction loan rates are typically 1–2% higher than standard mortgage rates, with even higher rates for investment properties.
- Given potential rate changes by 2026, securing a fixed rate is advisable.
Other Requirements:
- You must provide detailed construction plans, including a timeline and budget.
- You are required to use a licensed, experienced builder approved by the lender, and a final inspection will be conducted upon completion of the project.
- Stable income and sufficient cash reserves are necessary.
- Most lenders prefer a debt-to-income ratio below 43%, though some may allow slight flexibility.
Steps for Loan:
- Gather all required documentation, such as the land deed or proof of ownership, the builder contract, construction plans, and tax receipts.
- Apply for pre-approval with multiple lenders to compare options.
- Use a broker specializing in construction loans who can access wholesale products unavailable to individual borrowers.
- Select a builder with strong references or positive reviews.
- Establish a contingency fund by allocating an additional 10% to 20% above projected costs.
- This guidance applies to projects in or near Tennessee.
- UWM via a broker
- National banks such as Wells Fargo, Bank of America, PNC (which services TN), Alliant CU
- Local banks and credit unions such as Tennessee Valley FCU, Southeast Bank, and FirstBank all offer construction-focused products right here in Tennessee.
- For investment loans, private or hard-money lenders such as LendingOne typically charge higher interest rates, often from 8% to 12% or more, and offer shorter loan terms.
- Minimum loan amounts usually start at about $70,000.
- Close loans allow a lower down payment (3.5% or more) and more lenient criteria, but are mainly for owner-occupied homes, not investment properties.
- Loans up to 90% Loan-to-Value (LTV):
- Consider working with portfolio lenders or credit unions, as they may offer more flexible financing options.
- You may also explore a home equity loan or a home equity line of credit (HELOC).
- Some borrowers use private financing initially and then refinance into a permanent loan after the project is complete.
- If alternative options are unavailable, you may need to meet the lender’s minimum loan amount requirements to secure project financing.
Recommendation:
Work with a broker who specializes in UWM and construction loans. Search online for “UWM construction loan broker” or consult local experts. Improve your credit score, document rental income and savings, and obtain at least three bids from builders to strengthen your application. Provide detailed information about your project’s location and type.
Stay informed about changing loan requirements and market conditions, and prepare for possible construction delays or builder-related challenges.
These strategies reflect projections for the 2026 market, but each lending scenario is unique. Interest rates, terms, and available options may change, so consult multiple lenders to find the most suitable solution. A mortgage professional can assist with pre-approval and provide guidance throughout the process.
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I read so many raving reviews about Gustan Cho Associates and its wholly-owned subsidiary companies. I need a VA loan with bad credit. Can someone at Gustan Cho Associates help me get qualified for a VA loan with no lender overlays?
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Great question. I also have a question about Business Credit. Can you please tell me if there are any lenders or finance companies that offer a business line of credit without me, the owner having to guarantee it. I may be open to be a guarantor to the unsecured business line of credit. Thank you
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“SILVER TO $200 IN 3 MONTHS: Biggest Opportunity In My 20 Year Career!” – Peter Schiff
Gold has officially shattered the $4,000 barrier — a historic first that echoes the inflationary chaos of the 1970s. But what does this record-breaking move mean for investors, currencies, and the global economy?
In this video, we break down:
Why gold futures and spot prices are diverging.
How this surge mirrors the 1970s gold bull market.
The impact of Nixon’s 1971 gold shock and the end of the gold standard.
Why silver’s rally could signal deeper cracks in the fiat system.
The real forces driving this precious metals boom — from debt to de-dollarization.
We share interviews from experts like Rick Rule, Peter Schiff, Mike Maloney, Lynette Zang, and many others. Stay up-to-date with the world of finance and make informed decisions with our expert insights.
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🚨 Robert Kiyosaki is sounding the alarm — and if you care about your financial future, you’d better pay attention. In this RONS BASEMENT update, we break down Kiyosaki’s latest warning and what it means for silver, gold, and your wealth. The writing is on the wall — the dollar’s dominance is fading, precious metals are heating up, and the smart money is already moving. Don’t miss this critical breakdown of what’s coming next for gold and silver.
https://www.youtube.com/live/lBA9C53wqoU?si=vtn6C-xviKAKU4C7
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On October 7th, 2025, six major homebuilders were simultaneously downgraded by Wall Street. What I found when I dug into the analyst reports should concern every homebuyer and investor.
The housing affordability crisis has reached levels that statistically exceed the 2008 peak—but we haven’t seen a correction yet. In this video, I reveal the real data behind the downgrades, expose which two states are in panic mode, and explain what’s actually different this time.
What’s Inside.
The shocking profit margin collapse happening right now.
Why 75% of Americans can’t afford a median-priced home.
The “lock-in effect” freezing the entire market
Two states showing 2008-style warning signs
What Warren Buffett’s recent move really signals.
Should you buy, sell, or wait?
This isn’t speculation—every stat comes from Wall Street analysts, data, and homebuilder earnings calls. Whether you’re trying to buy your first home, wondering about your home’s value, or looking at real estate investments, you need to see this.
SOURCES: Evercore ISI, National Association of Realtors, NAHB, U.S. Census Bureau, Lennar/D.R. Horton Earnings, Harvard Joint Center for Housing Studies, Federal Reserve, Cleveland Fed.
