Looking for a new construction loan to build a SFR on Maui. I was looking into lenders who do build-to-rent financing, they either do not lend in this state, or the minimum loan requirement is over a million dollars. Two local banks require that it be owner-occupied and FHA is out of the question. I own the land. I met with the builder (modular home) and have gotten the blueprint and the buyer worksheet with the total estimated cost. I'm to put 20% down at contract signing with the builder, however, I'm hoping to find a lender who would do 100% financing. The lot was recently appraised at 195K. For those who have experience with construction loans, would it be possible to use the land's equity instead of putting a down payment? Also, any recommendations of lenders who do non-owner occupied construction loans?
Hi Kayla, you can do a construction loan first. After building, then refinance to a rental loan. Construction loan is short-term loan, usually 1-2 years. Rental loan is long-term loan, which needs the house to be move-in ready. So combining these two loans should fit your needs.