About Us

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 including the financing of bank-owned properties

GENERAL REQUIREMENTS

Terms: 6-12 month construction loans
Loan amounts: $50,000.00 to $500,000.00
Income: Full documentation (exceptions may apply)
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 or purchase agreement at closing).
Maximum 80% loan-to-value for borrower(s) with preferred credit (owner-builders, borrowers that have hired a builder, and package homes).
Maximum 75% loan-to-value for borrower(s) with average credit (builders, spec, partially started homes, and extensive remodeling projects).
Maximum 70% 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.

DRAW REQUIREMENTS

Unlimited draw program: Draw requests are submitted 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 the 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 disbursed and 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. Upon receipt of a complete loan package from your Bank or Mortgage Company, Construction Loan One, L.L.C. will underwrite your loan and provide an approval usually within two working days.

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. 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:

  • Construction Loan Summary (Form 1001)
  • Uniform Residential Loan Application (Form 1003)
  • GFE (Good Faith Estimate of Costs)
  • Credit Report
  • Copy of Recorded Deed to property, Purchase Agreement or Land Contract Agreement
  • Copy of Owner's Title Insurance to property (if available)
  • 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)
  • Signed Broker Agreement between Construction Loan One, LLC and your Bank or Mortgage Company

After approval and loan closing (unless land contract closing):

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."

Approvals usually within 2 business days

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