Goodrich – Hands-on experience building and financing his own home inspired loan officer Kenneth Wood to arrange financing for other self-builders.
Kenneth Wood, a 1985 Goodrich High School graduate, recently opened Kenwood Mortgage LLC in the Gass-Becker building at 7523 S. State Road, Suite A-3. Including Wood, the company employs three loan officers and a processor; and specializes in construction and new home loans.
When Wood decided to build his own home, he first researched a slew of financing options.
‘I’ve always felt the key was structuring it right and getting the right kind of financing,? said Wood, who feels it’s an advantage to those acting as their own general contractors to ‘have the flexibility to get the funds when you need it.?
Those able to find self-construction loans elsewhere may be restricted, says Wood. Checks are often issued to contractors instead of the borrower. Land usually has to be owned free and clear.
Because Kenwood Mortgage is one of the few brokers directly dealing with an investor, those with good credit can borrow up to 80 percent of the appraised finished property value without already owning the land.
‘Sometimes you can buy the property with the loan,? said Wood.
A down-payment of 10 percent of the cost of the land alone is required.
Borrowers deal with Wood from start to finish, helping clients estimate the cost, manage finances, and even convert the loan to an end mortgage, in most cases.
Wood holds degrees in economics and financing from Northern Michigan University, and a Master of Business Administration degree from the University of Toledo. He’s worked as a loan officer for Nolan Mortgage in Waterford for nearly five years.
Starting his business in his hometown was an easy decision, says Wood.
‘I want to be vested in the community where I live and my children go to school.?
Although the company just opened its doors to the public last month, Kenwood Mortgage already has a number of loans in progress, Wood said.
‘Most business is from referrals and past customers. The company is new but I’ve been doing this four-and-a-half years.?
Wood often acts as an adviser to clients, researching the best case scenario for their individual situation, whether someone wants a 30-year fixed-rate mortgage or an adjustable rate.
‘I’m not out there saying I’m the lowest rate in the world, but I’m very competitive,? he said.
Build-it-yourself loans currently vary from 6.25 percent with a builder’s license to 7.25 percent without a builder’s license. Wood also handles loans for small builders, he said.
A second mortgage on a new home can often save in the long run, says Wood, preventing a borrower from having to pay the cost of private mortgage insurance (PMI).
In addition to his knowledge base, Wood says the key to success is being up-front, honest, and scrupulous in dealing with clients.
?(Loans involve) very sensitive information, you’ve got to feel good about who you’re dealing with,? Wood said. ‘I treat somebody how I want to be treated. I don’t tell them everything they want to hear, I’ll say, ‘Look, here’s our biggest challenge.? People come back and say, ‘You were up-front with me’I want to do business with you.? ?