Construction Loan Article Center

Sunday, August 05, 2007

Stated Income Construction Loans

This is an out of sequence post regarding recent developments in underwriting of construction loans.

Mortgage loan origination and underwriting is going through some major changes. What in my view was a license to lie, namely "stated income loans", is disappearing fast.

We have included a new page about stated income construction loans, and kept the old where we warned about these loans not being a licence to lie!

Tuesday, May 29, 2007

18. Does The Construction Lender Really Need All This, Including Information On The Builder?

Not only does your lender need all this information, but also he/she could require even more!

Their role in this process is very important, and they need all the information possible to research the project and the builder.

17. What Will I Need to Show My Construction Lender in Order to Review My Loan Request?

Not only will your lender need standard credit documentation, but also, in order for your lender to see your vision as clearly as you do, your lender will want copies of the following:

1- Final architectural plans and specifications to obtain an appraisal.
2- Purchase contract for existing lot (or Closing Statement if you've closed the purchase transaction).
3- Description of Materials.4. Line item cost breakdown prepared by the contractor.
5- Your Contract with Builder.6. Copy of the contractor's license.
7- Builder's statement or application.

Don't forget: Get the necessary building permit for YOUR community!