Land & Construction Loans

Severn Mortgage incorporates the lowest downpayment acquisition and construction loans in the industry with the most aggressively priced permanent loans available anywhere. Our programs are designed for the consumer who wishes to put the least amount of cash into a custom built home.

Acquisition / Construction

• 20% downpayment based on the lot sales price, without regard to the construction costs. If the land is already owned, the accrued equity may be used in lieu of downpayment.
• We finance the remaining amount due on the lot and 100% of the construction costs.

• 100% financing can be arranged by utilizing the equity in your current home.
• Loans up to $2.5 Million.
• No qualification ratios for the construction loan.
• No builder approval required. Act as your own general contractor.
• Prime + 0% interest-only payments during the construction term, billed monthly and based on the amount that has been drawn at time of billing. (This is NOT the permanent loan rate.)
• 12 month construction term.
• All monies are paid directly to you and NOT the builder. You are in control!
• Points charged will be determined by loan amount.
• Lot loans are also available—please call for details.

Permanent Loan

• Choose the loan product and interest rate and points that best suits your present and future needs (fixed rate or adjustable)
• The permanent loan is based on appraised value and not cost, therefore you may totally avoid paying mortgage insurance, or pay at a much reduced premium level, despite putting very little money down. Second trusts may also be used to avoid mortgage insurance, but is usually not required.
• Don't be misled about "one-time" or "two-time" settlements. Our program is a two-time close and offers the following advantages over the one-time close:

1. Downpayment is not based on cost of construction, but cost of land, resulting in less downpayment than one-time programs.
2. One-time programs base the permanent loan on the total project cost, so, unless you have put 20% down, you will have to pay mortgage insurance.
3. The costs associated with the second closing are minimal when using our recommended closing agent and may even be rolled into the loan.
4. The total "out-of-pocket" cash requirements will always be less under our program than any one-time close program for loan amounts above $300,000.

• We offer No Income verification loans and loans to Non-resident Aliens.
• We offer Super Jumbo loans to $2.5 Million and above.