Construction Loan Articles

How Methods of Construction Affect Construction Lending

There are three basic approaches to home construction, site built, modular and manufactured.  Site built homes, also known as “stick built” in the industry, are constructed entirely on the building site.  Site built homes could be a panelized home, or a kit home, such as a cedar home or a log home.  In the case …

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Types of construction loan builder contracts

Construction loan programs 1, 2 and 3 require a fixed price contract with the builder, and a cost breakdown to match.  The concept of fixed price seems self-explanatory.  Any builder profit is built into the bottom line.  A “cost plus contract” involves the builder saying essentially, I will build the house for whatever the subs …

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