Louise and Roger decided to build their own home. Since they have a lot of construction and renovation experience they figured, “Why not build our own dream home and take advantage  of our contacts and experience?”

Roger estimated the cost of construction at $150/square foot at a total cost of $350,000 for a two story home measuring 45 feet wide by 26 feet deep. Despite his extensive experience, Roger miscalculated the costs of the insulation and the heating system. He also underestimated the cost of Louise’s expensive tastes in the kitchen and the bathrooms. Expenses kept mounting to the point that they ran out of money to complete the home’s construction.

Their problem? No financial institution was ready to lend money on an unfinished home, especially since this project had  not been approved from the outset.

Fortunately, Roger and Louise were recommended to me by a friend, who already used my services, and I was able to help them through this difficult situation.

An evaluator estimated that in order to complete the home and pay for the land, the total project cost would amount to $550 000. Roger and Louise needed an additional $250,000 to finish their dream home.

A private lender, specializing in this type of situation, loaned them the $250,000 for 6 months. Although the interest rate was more than double that of a standard 5-year mortgage and there were additional fees, this short-term loan allowed them to complete their home and re-finance with a bank for a better rate and conditions.

Private lenders are there not only to help people with credit problems, they can also be useful for all kinds of temporary financing solutions.

For more information regarding mortgage options, do not hesitate to contact me.

It will be my pleasure to assist you.

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