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Construction Loans

Interim. Construction Loans. Step #1 - Apply for financing Step #2 - Interim loan secured Step #3 - Construction commences Step #4 - Construction complete Step #5 - Permanent loan secured. Custom Home Financing Schematic. Custom Home Financing Time Line.

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Construction Loans

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  1. Interim Construction Loans

  2. Step #1 - Apply for financing Step #2 - Interim loan secured Step #3 - Construction commences Step #4 - Construction complete Step #5 - Permanent loan secured Custom Home Financing Schematic

  3. Custom Home Financing Time Line “Builder Package” Provided, Appraisal & Title Ordered Appraisal Received – Interim Loan Submitted Title Received – Interim Loan Closes Initiate Formal Loan Application Construction can now begin! Time to Credit Approval ~ 24 hours Time to Appraisal Receipt ~ 10 working days Time to Interim Approval ~ 5 working days Time to Interim Loan Closing ~ 5 working days Best case timeline from Initiate Loan Application to Commencement of Construction ~ 21 working days

  4. Step #1 Apply for Financing We offer four convenient ways to apply for financing. Choose the option that best fits your individual needs. • On-Line, Expedited Approval • www.caliberhomeloans.com/sbrooks • Available 24 / 7 Express Loan Application (by email or fax) Telephone Interview (by appointment) Personal interview (by appointment)

  5. Loan Documentation Requirements • Copy of the last two month’s most recent statements (all pages) for all checking, savings, IRA, money market, mutual funds, 401K, Thrift retirement, stocks and/or bond accounts. (Also acceptable, most recent quarterly statement) • Copy of last 30-days worth of pay stub - all employers • Copy of past two years’ W-2 (1099) statements (all) • Most current past two years’ tax returns – personal and business (all pages) • Name, address, and phone number for landlord(s) for the past 24-months • Copies of divorce decrees • For child support or alimony income, 12-months of canceled checks or 12-months of bank statements or state child support ledger • If a bankruptcy occurred within past 10 years, copies of all bankruptcy documents including discharge papers • Copy of any ONE of the following for all borrowers: valid driver’s license, passport, state ID, military ID, green card, immigration card, or government Visa

  6. Loan Documentation Requirements • VA borrowers also need - • DD214 • Original Statements of Service (if active duty) • Original Certificate of Eligibility • Transfer Orders (if applicable) • Energy Star Enrollment Certification • All documentation pertaining to the purchase of the property/lot: • HUD-1, Settlement Statement or Earnest Money Contract if property not already purchased • Original Title Policy (if lot already owned) • Survey (only if already completed) • Mortgage statement for current mortgage on lot (or subject property) • Builder’s Package - • Plans (exterior & interior) • Specifications • Earnest money contract • Funds (check, credit card or cash) for appraisal and credit report fees

  7. Step #2 Interim Loan Secured

  8. Determine Interim Loan Amount • The interim loan amount includes all costs associated with the building of your custom home. • Lot payoff • Interim costs • Costs to build • Home building costs • Architectural design • Utility hook-ups • Water well • Septic system • Flatwork • Driveway • Pool • Yes, in many instances, 100% of all the costs can be financed!

  9. Appraisal & title ordered Appraisal received Interim loan submitted & approved Title documents received Closing documents sent to title Interim loan closes Home Stretch

  10. Step #3 Commence Construction!

  11. The interim loan, also called a “construction loan”, is a line of credit. This line of credit is established solely for paying the costs associated with the building of your custom home. It works just like a credit card. You make a charge as you need money to pay the construction bills. This charge is called a draw. Interim Loan FAQs

  12. Interim Loan FAQs • A draw request is completed by you or your builder. The construction budget is typically used to detail what and how much is to be drawn. • The draw request is signed by YOU then forwarded to the interim lender. • The interim lender sends an inspector to your home. He/she confirms completion of the requested budget items. • The draw funds are now available.

  13. Interim Loan FAQs • Like any credit card, you will pay interest on the amount charged. You do not pay interest on funds you have not yet drawn. • The credit balance will increase as you take draws. As the credit balance increases, the amount of monthly interest also increases. • To avoid paying unnecessary interest, you should only take draws on work that is complete to your satisfaction. • The payment of interim interest is made monthly. A statement from the interim lender will be mailed to you each month.

  14. At time home is being sheet rocked, make contact with your Caliber Funding Loan Consultant. It’s time to start discussing the permanent loan details. Draw Requests Steps #4 & #5 Construction Complete & Permanent Loan Secured • Your Caliber Funding Loan Consultant will assist you through permanent loan closing and move-in.

  15. Stefen Brooks, NMLS #229142 Loan Consultant P210.236.4005 F855.638.4605 stefen.brooks@caliberhomeloans.com

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