Is there any lending company out there that will accept unusual payment schedules?

Question

I would like to borrow a large sum ($100,000) to build a house. Is there any lender that would accept a payment scheme based on yearly payments rather than monthly payments? For example, I could pay $10,000. every April 15th until the loan and interest were paid. Does anyone know of any lending institution/person who works with unusual terms such as that?

My credit history is good, but because I own this second property (on which I intend to build the house), I have a high loan to income ratio which makes it difficult to get a standard loan.

Answer 1

Actually 100k is a small sum and unlikely enough to build an average sized house. The interest would also be VERY high, it would take you many years to pay this off. There is also the problem of collateral, since this is not a construction loan you need to cover it with something other then the property you will supposedly build.

With you borrowing such a small amount of money banks would not be very inspired to risk a year with no payment to discover you are defaulting when the payment is due.

Answer 2

Possibly.

I have worked for banks that have made annual loans. It is done, but it is rare. You will need to provide a reason that you will have the money annually, but not monthly. For example, if you own a business that tends to get annual contractual funding or an annual lottery payment, then that would be a legitimate reason. If it is just because some months you would have the money and some months not, but you could save up over the year, then the answer is "no." In that case, no one would lend to you annually or monthly.

Answer 3

first of all if you want to build a house you need a construction loan! when you geta construction loan you only make payments on whats out. in other words. while building lets say after4 months they have spent 40k to build you would be paying interest on 40k.
once the home was completed and passed all inspections and got aC/O certificate of occupancy then you would convert your loan to a mortgage

as far as making yearly payments highly unlikely in todays market
and you dont want to go to a provate mortgage they will only do 50% of the value and the fees would blow you out of the water

Answer 4

Yes, but they will charge you for the pleasure.

You need to get a good mortgage advisor on your side to do all the searches and advise you which companies do special loans. It can be done but you may have to search a bit.

Answer 5

Sure... your looking for a private investor. Either someone with a self directed IRA or cash they can wait on. Don't expect a current market rate, however, it's just to risky for most.