High Ratio 90% Already Owning the Land

Example 2: 90% Financed to do construction (already owned the land)

Land Value: $ 100,000
Construction: $300,000
Total: $400,000

90% Loan to Value
Total Loan = $300K x 90% = $270K
Stages 40%, 70%, 100%

Draw $1 - 40% completion
$300K x 40% = $120K
$300K x 40% x 10% lien holdback = $12K
Advanced Fund # 2 = $270K - $120K - 12K = $105,000

Draw #2 - 70% completion
$300K x 40% = $90K
$300K x 70% x 10% lien holdback = $21K
Advanced Fund # 3 = $270K - $90K - 21K - (105K advanced fund)= $54,000

Draw # 3 - 100% completion
$300K x 0% = $0K
$300K x 100% x 10% lien holdback = $30K
Advanced Fund # 4 = $270K - $0K - 30K - (105K + 54k) = $81,000

Total Fund Advanced for Construction = $240,000
Total Lien Holdbacks = $30,000

Total Loan Amount = $270,000

NOTE: All applicants, like all mortgages, must meet Total Debt Service (TDS) and Gross Debt Service Ratio (GDS) and Credit Score requirement