Information contained within this document is considered proprietary non-public information and is provided for
internal use only to Assurance Financial employees. It is accurate as of the date of publication and may be
superseded by future publications. Distribution of this document or communication of any of the information
contained herein to third parties without the prior written consent of Assurance Financial is strictly prohibited.
Page 1
CONSTRUCTION 2x MATRIX
Effective July 1, 2020
New Construction (Ground Up)
Guidelines
Buying Vacant Lot and Construction Cost
Maximum LTV is 90% of total cost
(lot price + construction cost).
Borrower must invest a minimum of
5% of their own funds of the total
cost into the transaction. (If
appraised value is lower than the
total cost, that value will be used for
calculation.)
Own Lot Free & Clear and Construction
Cost
Up to 90% of the appraised value
(subject to completion).
Rolling closing costs into the loan
amount is acceptable.
Lien on the Lot and Construction Cost
Up to 90% of the appraised value
(subject to completion).
Rolling closing costs into the loan
amount is acceptable.
Borrower must provide HUD/CD
from the closing of the lot loan to
show a minimum 10% investment
when the lot was acquired. If not,
borrower must invest 5% of
construction cost into new loan.
***Lot donation is now treated the same as owning the lot free and clear.
Information contained within this document is considered proprietary non-public information and is provided for
internal use only to Assurance Financial employees. It is accurate as of the date of publication and may be
superseded by future publications. Distribution of this document or communication of any of the information
contained herein to third parties without the prior written consent of Assurance Financial is strictly prohibited.
Page 2
CONSTRUCTION 1x MATRIX
Effective July 1, 2020
New Construction (Ground Up)
Guidelines
Buying Vacant Lot and Construction Cost
Maximum LTV is 90% of total cost
(lot price + construction cost).
Borrower must invest a minimum of
10% of their own funds of the total
cost into the transaction. (If
appraised value is lower than the
total cost, that value will be used for
calculation. The appraised value
being greater than the construction
cost does not negate the required
10% investment.)
Own Lot Free & Clear and Construction
Cost
Up to 90% of the appraised value
(subject to completion).
Rolling closing costs into the loan
amount is acceptable.
Lien on the Lot and Construction Cost
Up to 90% of the appraised value
(subject to completion).
Rolling closing costs into the loan
amount is acceptable.
Borrower must provide HUD/CD
from the closing of the lot loan to
show a minimum 10% investment
when the lot was acquired. If not,
borrower must invest 5% of
construction cost into new loan.
***Lot donation is now treated the same as owning the lot free and clear.
Information contained within this document is considered proprietary non-public information and is provided for
internal use only to Assurance Financial employees. It is accurate as of the date of publication and may be
superseded by future publications. Distribution of this document or communication of any of the information
contained herein to third parties without the prior written consent of Assurance Financial is strictly prohibited.
Page 3
RENOVATION MATRIX
Effective July 1, 2020
Renovation
Guidelines
Free & Clear Home and Renovation Cost
Maximum LTV is 80% based on the
appraised value (subject to
completion).
Closing costs can be rolled into the
loan amount if LTV permits.
Mortgage on Home and Renovation Cost
Maximum LTV is 80% based on the
appraised value (subject to
completion).
Closing costs can be rolled into the
loan amount if LTV permits.
Purchasing Home and Renovation Cost
Maximum LTV is 80% based on the
lower of total cost or appraised value
(subject to completion).
Closing costs can NOT be rolled into
the loan amount even if LTV permits.
Home Donation and Renovation Cost
Maximum LTV is 80% based on the
lower of total cost or appraised value
(subject to completion).
Closing costs can NOT be rolled into
the loan amount even if LTV permits.
