|Re: Construction Loan Financing||<– Date –> <– Thread –>|
|From: Rich Lobdill (richardlsilcom.com)|
|Date: Fri, 19 Feb 1999 11:06:50 -0600|
Denise Meier wrote: they required 20% of the APPRAISED value of the project, which was considerably less than the COST of the project. We each (except for the two subsidized low-income units) ended up putting in 35% of our projected purchase price, plus paying for upgrades and change orders in cash. Denise: I hope you meant "... which was considerably *more* than the COST of the project...". If your project appraised for a lot less than the cost, the permanent financing (or 'take out' loans) for each house would only cover a portion of appraised value and you would have to have a significant cash down payment. Could be done, but would not bode well for resale values. Rich Lobdill Tierra Nueva Cohousing.
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