There are a number of unique features in the AMIC construction program that make it particularly appealing. These features are designed to make the construction process more convenient and less of a financial strain on you. 

Interest Reserve

The cost of the interest payments due during the construction period may be financed under this program when your not occupying the property during the construction phase. This eliminates the need to pay the cost of carrying both the new project and your current mortgage or rental payment. If you elect not to finance the interest reserve, or do not qualify for it to be financed, then non-retirement assets in the amount of the reserve account must be verified. The interest reserve is calculated using the construction interest rate and assumes that an average of 60% of the loan balance will be outstanding over the term of the construction period.

Contingency Reserve

Cost overruns are a fact of life in construction projects. Option selections change and unforeseen problems often arise with renovations. Rather than requiring you to fund these additional charges out of pocket, the AMIC construction-perm loan allows a reserve account to established and financed to cover these expenses. The contingency reserve for new construction projects and teardowns will be 5% of the construction cost, and for renovations and cost-plus contracts it will be 10% of the construction cost. Establishing a contingency reserve is encouraged, but if you elect not to finance the reserve, or do not qualify for the reserve to be financed, then non-retirement assets in the same amount of that reserve account must be verified.

Cross-Collateralization

Often, you may need the equity from yourr current residence to fund the downpayment on the new one. But on new construction transactions, you cannot sell that home because the new house is obviously not ready to occupy. The AMIC construction-permanent program allows you to use the equity in your existing residence, toward the purchase/renovation of the new property all in a single transaction. A first lien is placed on the new property and a first or second lien is placed on the existing property. When construction is complete, you have 90 days to sell the existing property, apply the proceeds to the construction loan and convert to a permanent loan.

Eligible Properties - Primary and Second Homes.  Traditional and Modular Construction.

National Association of the Remodeling Industry

National Association of Home Builders 

YES! - I am interested in a Construction - Permanent Loan