The end of march visited Elite housing found a house we liked, filled out a credit application with there in house finance company, cornerstone capital, and a few days later were approved for a FHA loan at a interest rate of 5.385 percent.
They recommended we do a construction loan with Sage capital (all three business owned by same family) as it would save us money on the interest charges. The interest on this loan was 12.5 percent but we would only have to pay the interest on monies as they were paid out and we aggreed. The construction paper were signed, the contractors put in our foundation and were promptly paid, our house was delivered the last week of may, and set the first week of june.
The 3rd week of June we get a call from Gary Trowbridge owner of cornerstone capital to tell us we didn't have long term finacing and would have to continue on with the construction loan until they could get us long term financing, which would be sometime next year.
Now sage capital has offered to carry this loan for seven months with us making a payment of somwhere around 650.00 per month as a interest only payment and at the end we will be financing the same amount as the original amount so basically we will paying them approximately $4550.00 for them to carry this loan until cornerstone can get us long term finacing.
Their reasoning for us not to be able to get long term financing was we don't have 2 years of tax returns that show we made money but they say they didn't know this until all of this other stuff had taken place.
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