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3/13/2010

Thank you for picking my Forum tip. I am fairly early in the process, just finishing with the planning. I have taken your advice and planned till I couldn't plan any more. I hope it goes smoothly. The bank was very impressed with the proposal we put together. I also wanted to say how helpful your site has been. Thanks for the great site.
Steve D., Silver Spring, MD


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Construction Loans

Posted to MortgageSmart by Gary in Cocoa, FL on 1/19/2009 7:20:09 AM

Construction loans are designed to assure adequate funds to complete the construction of the building(s) and to produce a value that supports the amount of the loan. Funds are drawn down on residential loans based on a percentage of work completed draw schedule.

Lenders have designed their construction loan program to assure a smooth payment process during construction and to provide the borrower and the lender with a secure position.


Typical Construction Draw Procedures:


1. The following procedures are typical for draw disbursements.

A. A draw schedule will be provided to the builder/contractor at closing along with the construction loan agreement.

To see more about construction loans visit mortgage-smart


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