The Custom Home Equity Sharing Program

Unique Homes of Texas, Inc. (UHT) and its financial lending sources use the following general guidelines to place client/investors into pre-construction programs throughout Texas. These guidelines are general in scope, and in no way guarantee that all clients are eligible for this unique real estate investment program.

UHT, Inc. uses privately sourced funding to back our pre-construction programs. Underwriting criteria are set and determined by these sources in conjunction with Unique Homes of Texas, Inc. Only projects that have been reviewed and approved by UHT, Inc. will be submitted to our financial lending sources.

It is imperative that all client/investors understand that all funding for any loan provided by the financial lending sources is based on the combined financial strength of the client/investor and the project itself. This program is a financial investment; accordingly, client/investor funds may be required on any loan that fails to meet the minimum requirements set forth by the lending entity. No client/investor shall be promised a "no money down" program.

Types of Programs Provided

Unique Homes of Texas, Inc. offers the following types of projects:

  1. Construction of Single Family Residence for Primary Residence, Second Homes and Investment Spec Homes
  2. Individual Builder Spec Homes
  3. Construction of Multi-Family Residence
  4. Commercial Construction
  5. Land Development
  6. Other Specialty Loans

Program Process

The components of the Program Processes are detailed as follows:

  1. The Investor is referred to the program and completes the required documentation for pre-approval (application, authorization form, and requisite financial information).
  2. Once the investor has been pre-approved for a designated loan amount, he is matched with a specific project that meets both his interest level and financial capabilities.
  3. After approving the project and executing all the required contracts and documentation, the investor package is then provided to one of UHT's financial affiliates.
  4. Upon closing of a12-month interim construction loan in the investor's name (this is to ensure that the client begins the seasoning of the property once it closes holding title to the property), the permit acquisition process necessary to the commencement of the construction phase begins. (This step usually takes 30 days or less)
  5. Construction commences. Turnkey completion takes on average 4 to 5 months. Investors are given by-monthly updates of progress including photograph of the construction in-progress.
  6. Within 60 days of closing, UHT's sales and marketing team will begin marketing the investor's project, providing Investors in-depth updates on the marketing and the progress of the Investor's specific project(s).
  7. Once a contract is established, the sales and marketing team will coordinate with the investor on term and conditions until the home is complete. Once completed, UHT, Inc. delivers a Certificate of Occupancy at which point the sale can be concluded.
  8. The investor receives the entire amount of equity in the project at sale, less sales fees and closing costs.
  9. If the home is completed prior to any sales contract, UHT's sales and marketing team will continue its marketing process - keeping the investor informed of progress as detailed above.
  10. If the home does not sell within the first 10 months, UHT's financing team will begin providing the investor permanent loan options to ensure that the loan is taken off of the lenders books within 12 months.
  11. If the loan must become permanent, UHT's sales, marketing, and finance teams will continue the process until the home is sold to an end buyer.
  12. Once a project has completed the entire process detailed above, UHT, Inc. and the investor will repeat the process, subject to the desires of the Investor.

UHT also offers Investors the opportunity to purchase spec homes of UHT's own design and construction for either a shared profit or the entire equity portion following such a purchase.

Rates and Terms of Pre-Construction Projects

The following rates and terms have been determined and proposed by UHT, Inc. and our financing affiliates, and are tailored to the individual client/investor and project package.

  1. 80% of appraised value of completed project in most cases or 90% of hard cost
  2. 1.5% to 2% above the prime lending rate for interim interest
  3. Private lending at 70% LTV
  4. 2% origination
  5. Interim construction time frames set for 6 to 9 months depending on size, weather, and other construction factors.

UHT, Inc. attempts to roll into the 80% of appraised value all interim construction, lot, and closing costs. However, costs are determined by appraised values and any costs above the appraised value will be the responsibility of client/investor at the time of closing or at a time otherwise determined by UHT and its underwriting department. Notification of such costs will be provided to the client/investor for approval and acceptance prior to loan approval and closing.

Loan Documentation Programs Available

The following loan documentation is available to the client/investor:

  1. Full Documentation on interim construction loans
  2. Some stated with compensating factors

Loan Qualification and approval are based on:

  1. Credit Scores of 700 or better
  2. Liquid Assets (can be in the form of cash on hand, stocks and bonds, property equity, etc.)
  3. Net Worth
  4. Appraised value of project

Therefore, the more documentation a client/Investor can provide supporting financial and project strength increases his chance of loan approval, and affords him the possibility of better rate and terms, as well as faster turn times on loan funding.

Required documentation will vary by project type.

Client Profile for Single and Multi-Family Pre-Construction Price Points

The following outlines the recommended client/investor profile for price points of pre-construction projects:

Full Documentation

Projects $500,000 and up:

  1. Annual verifiable income of $150,000 & up (business losses and deprecation can be added back in on tax returns)
  2. Liquid assets of $150,000 or more (can be cash, equity, stocks and bonds etc.)
  3. Credit Score of 700 or greater
  4. Maximum Debt to Income 50%

Projects $350,000 to $499,000:

  1. Annual verifiable income of $100,000 & up (business losses and deprecation can be added back in on tax returns)
  2. Liquid assets of $100,000 or more (can be cash, equity, stocks and bonds etc.)
  3. Credit Score of 700 or greater
  4. Maximum Debt to Income 50%

Projects $200,000 to $349,000:

  1. Annual verifiable income of $75,000 & up (business losses and deprecation can be added back in on tax returns)
  2. Liquid assets of $75,000 or more (can be cash, equity, stocks and bonds, etc.)
  3. Credit Score of 680 or greater
  4. Maximum Debt to Income 45%

Projects $100,000 to $199,000:

  1. Annual verifiable income of $50,000 & up (business losses and deprecation can be added back in on tax returns)
  2. Liquid assets of $50,000 or more (can be cash, equity, stocks and bonds, etc.)
  3. Credit Score of 700 or greater
  4. Maximum Debt to Income 50%

NOTE: UHT reminds all client/investors that real estate investment is a risk and that no guarantees are made by UHT and its affiliates as to any profits or loses incurred by the client/investor. UHT and its affiliates are only a source of information to investment opportunities and will not be held liable for such investments. Therefore only those individuals with the financial strength to invest need contact UHT and its affiliates.

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