Utah Construction Loan

[jgw50]

Anyone have any advice on getting a construction loan in Utah? I have plenty of places that will do it, its just that the fees and interest rates vary wildly.

I'm calling and calling people, but am curious to know if anyone on the forum has any input.

Thanks!

 

[Kevco]

Personally the only advice Id give ya is avoid Zions if ya can, I know last quarter their stock jumped up so they may be pulling back from the brink of death but I know they have been struggling, they also seem to have a inordinate amount of paper work? Banks are like lawyers now days good luck!

 

[sled_guy]

You can actually thank the new 'bank regulations' for the wildly different fees and rates. The new regs make it awfully difficult for banks to loan on projects that can't be physically appraised (new construction or remodels).

Contact Jared Browning at jbrowning@accessmortgageutah.com and tell him Dan Canfield referred you. If he can't help you out he'll be able to recommend someone who can. He has done my last couple of mortgages as well as several of my friends and family, great guy to work with.

sled_guy

 

[jgw50]

Of the 15 places I have called so far, Zions is the worst! 3% origination fee?

I already pay my 10% "origination" fee every year. Come on!

 

[Boondockn]

May be a dumb question but are you building a house or doing another type of project? I know some hard money guys who are reasonable and a lot easier to work with!

 

[jgw50]

Building a house, happy to talk to hard money guys, loan to cost will be 70% though, most hard money guys like 60% from what I gather?

 

[JSCC]

Most private money gents charge a flat rate of 12%. Sometimes that can work for you and sometimes against you, depending on the time it takes you to build and how you pull your draws.
As for banks, Bank of Utah and First National of Layton will be your best bets. Steer clear of Goldenwest right now even though there rates "sound" really low......it will come back to get you on your long term.
Zion's has been struggling. However if you dont mind working with there Logan mortgage branch, they are still doing fairly well as Logan has remained somewhat strong, as far as construction go's anyhow.