FAQ's
Q. What is your max loan amount?
A. We have no true max loan amount. Since we fund our construction loans out of our portfolio we will look
at all scenarios. However, the higher the loan amount the more liquid assets and verifiable income the
borrower needs to have.
Q. What is your minimum loan amount?
A. Our minimum loan amount is $100,000. We will make exceptions on occasion to go below that loan limit.
Q. What is your interest rate during construction and does it adjust?
A. Our rate is 3.5% regardless of loan amount and no it does not adjust during Construction.
Q. What are the terms for your Construction Loan?
A. We have terms from 3 months to 24 months+.
Q. Do you allow the borrower to extend their Construction loan term?
A. Yes we do but it costs .25% of the original loan amount for every additional 3 months. You can extend as
many times as you need to in order to finish the construction.
Q. What are your closing costs?
A. We do not charge any origination fee. We charge a $800 Underwriting Fee, a $250 draw fee and an
appraisal fee that will vary according to the loan amount.
Q. What is your maximum Debt to Income Ratio?
A. We will qualify the borrower up to a 50% Debt to Income Ratio. Some exceptions are made if there are
significant compensating factors such as income or liquid assets.
Q. What are your Fico Requirements?
For loan amounts greater than $1,000,000 we require a 720 Fico. For loan amounts less than $1,000,000 we
require a 680 Fico score.
Q. How do your Loan to Value's vary with loan amount?
A. We will lend 80% LTV to 1 Million. 75% LTV to 1.5 Million. 70% to 2 Million. 65% to 2.5 Million. 60% to 3
Million+.
Q. How does your draw process work?
A. All draws are funded locally through the original title and/or escrow company that was used to close the
loan. The borrower can determine if draw funds are issued to the borrower or builder. Draws are usually
processed within 2 business days of request. Usually the original appraiser is used to inspect the property to
make sure work is completed before issuing the draw.
Q. What types of properties qualify for your Construction Loan?
A. 1-2 unit Primary Residences and Second Homes only.
Q. Home much in liquid funds are required to close?
A. For loan amounts up to $650,000 we require 6 Months PITI. For loan amounts between $650,000 and
$1,000,000 we require 9 Month PITI. For loan amounts greater than $1,000,000 we require 12 Months PITI.
Q. Do you require more than one appraisal?
A. For loan amounts up to $1,000,000 we only require one appraisal. For all loans over $1,000,000 we require
two appraisals.
Q. Do you allow contributions by interested parties?
A. We allow 6% of the lesser of sales price or appraisad value.
Q. Do you allow subordinate financing at closing?
A. No we currently do not allow subordinate financing at closing.
Q. What do you require at Construction Completion?
A. We require a final property inspection, issuance of final title policy and a certificate of occupancy.
Q. Can a borrower have a bankruptcy or short sale on their credit and still qualify?
A. Yes, 7 years must have passed if a bankruptcy or Foreclosure, and 4 years must have passed if there has
been a Short Sale.
Jonathan Baird / Construction & Lot Loan Department
jonathan.baird@usbank.com/ 435-640-7892