Construction Loan to Mortgage?

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I currently have a construction loan on the house that I live in but we can’t qualify for a mortgage. Our bank keeps extending the loan even though the house is completed and we’ve lived in it for over a year. How long can the bank continue to do this? Are there federal regulations that the bank has to follow in this situation or is it at their discretion?
We did qualify when we started building and then all of the big changes happend with mortgages and we would have to qualify for a jumbo loan.

  1. Reply
    May 1, 2011 at 4:42 am

    did you ever get a certificate of occupancy? Once that is done the loan must be converted to perm

  2. Reply
    Beverly S
    May 1, 2011 at 4:57 am

    They are not required to continue to extend it and I am amazed that they are doing that. If you qualified for the construction loan you should qualify for a regular mortgage unless something major has changed. Have you tried for an FHA loan? 620 credit, 2 years income & 3.5% down.

  3. Reply
    May 1, 2011 at 5:37 am

    You are fortunate that the bank keeps extending. How in the world did you qualify for a construction loan if you can’t qualify for a permanent loan? Start shopping lenders, and lots of them before your bank stops extending the construction loan.

  4. Reply
    Janet P
    May 1, 2011 at 6:12 am

    They extended for a YEAR? Most people thank their lucky stars if they can get a month.

    I wish I could answer this, but everyone would have been foreclosed on and sued by now.

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