Category: Construction Loans

PRODUCTS FOR BUILDERS

We have a product for builders who are building spec homes for profit. The minimum loan amount is $150,000 with a maximum loan amount of $3 million. For review, we need the detailed budget, construction schedule/development phases, and architect drawings. The lender considers the following in the credit decision: ● Borrower characteristics/Total exposure approval (experience in the space, experience in the market) ● Concentration risk in the subdivision (total number of planned units, current phase, % of planned project under construction at one time) ● Local/Demographic data (where is the neighborhood, is it by a large metro, local absorption rates,...

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CONSTRUCTION LOAN APPROVAL PROCESS

Are you planning to build a home? There are construction loan options for you. There are two approval processes for a construction loan: One for your credit and income. One for the construction and the building. You will need the final building plans, specs, and cost breakdown ready to give to the lender. The most typical loans are one-time close and two-time close construction loans: The one-time close construction loan only requires one underwrite, which is at the beginning of the process. Once you have an approval, then you can commence building. The approval is good through construction and after...

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