Can you obtain a construction loan in 2008

2008 is going to go down in the financial lending history as one of the best and worst for many reasons.

First of all the following construction loan lenders that are no longer with us or that have stopped providing construction loans are, Wamu, Indy Mac, First Horizon, National City, Bismark, Chase Wholesale just to name a few.

It’s important to note that construction lending for home building is the backbone of America. If families were not able to build or buy a newly built home in America then America might as well become a third world country now and get it over with. Well for the first time in 2008 I can honestly say I see some light at the end of the tunnel.

Since my business is about providing construction loans, (Nationwide Construction Loans and California Construction Loans)I really have an invested interest in survival and knowing my future. Banks and lenders needed to stop the bad loan bleeding fast and the quickest way to do that was to eliminate stated income or at least make it very difficult to apply as stated income.

Stated income in my opinion was the key integrating factor for causing foreclosures. Stated income as some people call it “lying loans”. Yes you read that correctly people mistated their income in order to obtain a mortgage. The happened all across the board from sub prime loans to refinances, purchase loans and even construction loans.

If you want to obtain a home loan of any kind in America today you need to prove your income and now that it’s become the norm I’m starting to see the banks settle down. The rest of 2008 and 2009 may become one of the best years in financial history now that all lenders are providing loans based on honesty and reality.

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