Lending Guidelines

Financing Available For

Owner-Builders
Builders (experienced or inexperienced)
Log Homes, Modular Homes and Manufactured Homes
Spec Homes, Partially started homes, Extensive remodeling projects, and other Unique Situations

General Requirements

Terms: 6-12 month construction loans
Loan amounts: $50,000.00 to $500,000.00
Income: Full documentation / Stated / No documentation
Credit: A+ through "Equity" credit
Equity: Property must be paid for free and clear (or, we will assist you in paying the balance on your land contract at closing).
Maximum 90% loan-to-value for borrower(s) with preferred credit (owner-builders, borrowers that have hired a builder, and package homes).
Maximum 80% loan-to-value for borrower(s) with average credit (builders, spec, partially started homes, and extensive remodeling projects).
Maximum 75% loan-to-value for unconventional or non-conforming construction loans.
LTV is calculated using the lower of acquisition cost (actual cost to build) or appraised value.
Additional collateral may be required with some of the above general requirements.

Draw Requirements

Unlimited draw program: Draw requests are faxed by borrower to lender and disbursed by lender the next business day. An updated Statement of Account is prepared by lender and included with each draw request. A Waiver of Lien is also prepared by lender and provided to borrower with each draw for signature by the appropriate supplier and/or sub-contractor. Lender will disburse draws on an unlimited draw basis as work is performed or materials are delivered (money for deposits are available upon approval from lender).

Seven (7) draw program: The borrower or the builder will be required to submit a signed and notarized Sworn Statement including the corresponding Lien Waivers to an assigned title company. Upon the title company issuing an Endorsement Letter to lender (in an amount equal to the draw request), the draw will be available at the title company.

Interest Rate & Fee Schedule

The total costs on your construction loan are shown in our published Interest Rate & Fee Schedule.

Deposit Requirements

Construction Loan One, L.L.C does not charge an application fee. You may get approval for a construction loan at absolutely no cost. We will meet with you, review your application, approve your construction loan, and mail you an approval letter within a few days of your application.

When you call us to schedule your closing date, we will require a refundable "Good Faith Deposit" in the amount of $400.00 at this time. When your loan is closed and activated (first draw), we will return your refundable "Good Faith Deposit" in the amount of $400.00. If you close on your construction loan and never activate your account (never make a first draw), you are charged only for those costs actually incurred by Construction Loan One, L.L.C. from unrelated third parties for expenses such as credit reports, mortgage title insurance, appraisal, foundation survey, and closing documents.

Documentation Requirements

Prior to approval:
Pre-Application
Uniform Residential Loan Application
Credit/Deposit Authorization
Financial Privacy Policy and Disclosure
Copy of Recorded Deed to property, Land Contract Agreement, or Purchase Agreement
Copy of Owner's Title Insurance to property
One set of professional blueprints
Copies of Last two (2) years of income tax returns, complete with W-2s and/or 1099s
Verification of Employment (letter from employer or last pay stub)
Current paid tax receipt on property
After approval and loan closing (unless land contract closing):
Copy of Building Permit (obtained by owner or your builder)
Builder's Risk Insurance Policy or Homeowners Insurance Policy (obtained by owner with a minimum coverage equal to loan amount)
Foundation Survey (ordered and paid by Lender)
Appraisal (ordered and paid by Lender)
Construction Cost Breakdown Worksheet (costs need not be supported by written bid(s) unless requested by Lender)
Prior to first draw:
All of the above documentation must be submitted to lender, reviewed by lender, and approved by lender.

Lot Value Data

Acquisition cost of land equals 1) original cost (if owned less than twelve (12) months) as evidenced by Land Contract, Warranty Deed or Purchase Agreement; 2) present market value will be considered if owned for more than twelve (12) months or in situations where property is "gifted."