I am looking for a no doc single family construction loan (>1mm). Own lot valued at $350k. Existing home valued at around $900k is paid for as well. I'm obviously ok with paying higher rate. Self employed. Not selling existing home (and renting) until new home is constructed?

I figured some hard money guys on here may be interested. Can anyone point me in the right direction? Thanks is advance!

. sorry the comment about not selling the existing home until new home was constructed was not supposed to be in the form of a question.

This is going to be a tough one bc of the amount. Unless it is on a very desired lake or has major acerage, most lenders will be shy of it. Remember that your ideal house will likely lose money if it needs to be sold quickly (putting lender at risk)


Which area?

And I'm in the process of doing the same. 400k land with 600k-750k build. If I didn't own 300+ equity in the land and put 100k of cash down my lender said no.

Assuming its doable, what the difference in rate/terms look like? I've got a similar situation, but am hoping to still get documented/conventional.

I do not believe that loan is out there. There are no docs and asset based loans but I'm not sure about a construction loan combining those types of loans.

Also hard money tends to not want primary residence deals but you can check

For a primary residence federal law more or less require that the lender verify your "Ability to Repay" or ATR. That does not necessary have to be through tax returns/paystubs but could be through bank statements or other relatively creative methods for self employed borrowers. But, as a lender you really need to have a methodology that you can document. So, that makes "no doc" for owner occupied properties pretty much impossible.

Ironically, non-owner occupied properties are much easier to qualify for as the lender does not necessarily have to prove your ability to repay (although the best rates/terms of course require to still go full doc). That is why hard money/private money is lent on non-owner occupied properties.

We do have some creative ways to help in these situations from time to time if the issue is debt to income. My email is my screen name if you would like to discuss.

OP do you have significant liquid assets? Asset dissipation is another way to calculate income.

In terms of net worth, I'd like to say yes it is fairly significant all things considered-but I know everything is relative....

In terms of liquidity, yes I can show I could pay the entire note for several years based upon a 10-12% rate.

Just got a no doc email. Investment property only

Just thought I would add an update.... Others have mentioned they are in a similar situation.

I have no idea why all these mortgage guys I reached out to didn't suggest this, but as I educated myself on this, I came to realize that lenders don't give a damn if your house is paid off (atleast in TX) when applying for a new construction loan. They want dollars/skins in the game, so as a result I am doing a huge cash out refi on my existing house and taking those proceeds to buy down the amount on the construction loan.

My LTV is under 50% and everybody is happy. Once construction is completed on the new house, existing house is sold. This way I do not have to sell my house and rent on front end of the process.

Not sure if I am missing anything but my bank now seems to be gung ho on doing the deal....

I'm mortgage. Your guys are correct. My numbers is all I care about. Does the deal work? Can i send money to your closing? On time?

If I send my money on time with out too much drama is my service goal. What I'dont care about...

Your paid off house
Your future career
Your future income
Your wife's future income

I deal with today.

So you were able to document income for the equity loan?

Yes. The LTV is only 45% of the project so the lender loosed their collar a bit.

I guess I misunderstood your OP. I thought documentation was the issue.

In a sense it was, but I am able to show documentation now that the loan is almost cut in half.