| 5/6 ARM Construction SOFR |
| Monthly draws during the construction term
Interest Rate locked before breaking ground
Interest-only payment required during construction phase
Loan re-qualification is not required upon completion
Rate float-down available when construction is complete
Option to pay down your principal balance at conversion to permanent mortgage |
| Building a primary residence or second home
Wanting to finance the lot purchase or lot payoff, home construction costs and a permanent mortgage into one loan
Looking for a loan for new construction and you plan to hire a Licensed Builder
Interested in 12 or 18-month build period |
| Increase in loan amount not available
Must hire a Licensed Builder for entire home building project
It's riskier if you don't expect your income to increase over the initial fixed rate period to cover the potential change in monthly payment
Interest rate may rise above the current fixed rates over time |
| Rate caps = 2% on the first adjustment, 1% every 6 months thereafter and 5% over the lifetime of the loan.
Index = FRBNY 30-Day Avg SOFR
Margin = 3.25%
Non-convertible
Assumable with lender approval |