Are doctor construction mortgages available? Those would be loans that have special underwriting guidelines for doctors, and physicians, that are used to buy the land, and do the vertical construction of the home. That is a more onerous process when you talk about construction loans, because not only is the bank, or the institution, making the loan, giving you the money, but they also have to administer the draw process, make sure the general contractor’s work is up to par, and that there’s no liens being filed against the property as you go through the construction process. It’s a quite laborious process.
What I generally find is that the bigger national banks don’t play in that field, because it’s hard if you have a headquarters in Texas to be administering draws in Idaho. Generally speaking it’s the regional smaller banks that have a local footprint, that can send their bank officers, or their appraisers, out to do the inspections and administer the draw process. They oftentimes have relationships with many of those local builders, and it’s very much a relationship business. Because when you do a construction loan not only is the bank making a investment call, a risk analysis, on you as a borrower, as the doctor. They’re also analyzing the builder, because if that builder cannot build that home for those number of dollars, they have a failed project. That’s a big problem. Banks don’t like to own homes.
What I would suggest is that you find a regional solution. I would Google construction loans in the state, I would Google physician loans in the state, and then start reaching out to the people that you find. You’re more than welcome to reach out to us. If it’s in Utah we have some great solutions, that’s where our physician headquarters are. If it’s more nationally that you’re looking for, we could probably point you in the right direction. Generally speaking, the smaller the bank, the more likely you’re going to find someone that’s going to be able to … the more regional bank, the more in the vicinity of where you’re buying, the more likely you’re going to find someone that is an expert in construction lending.
All right, hope this is helpful. Honored to answer any of your questions and invite you to reach out to Evelyn Ellett via phone (855) 262-4827 or you can Contact Us here. Hope to hear from you soon.