Five Star Bank Offers Niche Loan Products
HOME LOANS, INDUSTRY NEWS, SHASTA COUNTY, TIPS FOR BUYERS
April 20th, 2009
Local banks tailor loans to fit unique properties found in Shasta County. Five Star Bank, the new kid on the block, has jumbo and construction loans not found at most banks that offer real estate loans. Jean Peterson, a long time loan officer in Northern California, reviewed these loan products with local Realtors recently.
They offer a jumbo loan for properties valued over $417,000 to $1,000,000. Here are some of the loan parameters as of April 15, 2009:
- First deed of trust only-no secondary financing allowed
- Credit score for borrower above 700
- 65% maximum loan-to-value
- Full documentation required
- 30-year amortization
- 1 point plus $500 doc fee, appraisal and title insurance
- 7.5% interest, 7.610% APR, due in 5 years
- 7.75% interest,7.861% APR, due in 7 years
Owning a high end property costs nearly 3% more in mortgage interest than the more affordable homes selling today. These loans can also be utilized for ranch properties with large acreage sizes.
Construction loans are available for builders and owners constructing a new home or purchasing a manufactured home to be placed on private property. Jean can refer a borrower to another lender to arrange a permanent take-out loan to refinance the construction loan once the improvements have been completed. Most banks do not get involved with short-term construction loans.
For more information on jumbo and construction loans, contact Jean Peterson at 530-223-6652.
530-224-6767 or 530-941-7492
BRAD GARBUTT
REALTOR/BROKER ASSOCIATE
REAL ESTATE PROFESSIONALS GMAC
QUARTER CENTURY LOCAL REAL ESTATE EXPERIENCE
