- My Forums
- Tiger Rant
- LSU Recruiting
- SEC Rant
- Saints Talk
- Pelicans Talk
- More Sports Board
- Fantasy Sports
- Golf Board
- Soccer Board
- O-T Lounge
- Tech Board
- Home/Garden Board
- Outdoor Board
- Health/Fitness Board
- Movie/TV Board
- Book Board
- Music Board
- Political Talk
- Money Talk
- Fark Board
- Gaming Board
- Travel Board
- Food/Drink Board
- Ticket Exchange
- TD Help Board
Customize My Forums- View All Forums
- Show Left Links
- Topic Sort Options
- Trending Topics
- Recent Topics
- Active Topics
Started By
Message
re: OT help with construction loan process
Posted on 10/11/21 at 11:36 pm to shoelessjoe
Posted on 10/11/21 at 11:36 pm to shoelessjoe
My team lends money to commercial developers including home builders. We don’t lend to individuals… that said… no. You put your 20 down on the land. I’m not lending on materials until the work is in place … those things can walk off the job site. Think of it this way. After closing… you put up the work, the bank inspects then it funds.
We also do percentage of completion method. Not invoices. So if you’re over budget on a line item, you’re paying the difference then. Can’t do it off of invoices and the project goes over budget and you don’t have the money to finish after the loan is fully funded.
We also do percentage of completion method. Not invoices. So if you’re over budget on a line item, you’re paying the difference then. Can’t do it off of invoices and the project goes over budget and you don’t have the money to finish after the loan is fully funded.
Posted on 10/12/21 at 1:07 am to dallasaggie
The materials will be stored at the warehouse by the supplier. Already talked about that to them. So if I have say 115k which is over 20% of total cost of home plus I own the land, I am not allowed to use the 20% I already have, to purchase materials and have them stored at warehouse until loan is finalized? I am only talking for about 6-8 weeks before I am ready to start. Materials are already at warehouse waiting for me to say bring them builders are here. Not like it will be stolen or walking off.
This post was edited on 10/12/21 at 1:13 am
Popular
Back to top
Follow TigerDroppings for LSU Football News