Generated by All in One SEO v5.0.0.1, this is an llms.txt file, used by LLMs to index the site. # e-constructionloans.com Construction Loans ## Sitemaps - [XML Sitemap](https://e-constructionloans.com/sitemap.xml): Contains all public & indexable URLs for this website. ## Posts - [Construction lenders will lend off of what the house will be worth when completed.](https://e-constructionloans.com/construction-lenders-will-lend-off-of-what-the-house-will-be-worth-when-completed/) - Between 2003 and 2008 this was true for many construction lenders. Construction lending had moved to where, if a bank was going to be competitive, they needed to ignore how much cash the borrower had in the deal, and just lend of the end value. Multiple construction lenders were doing 100% of costs as long as - [Starting construction with our own money won't be a problem.](https://e-constructionloans.com/starting-construction-with-our-own-money-wont-be-a-problem/) - This is not a good idea. Historically, most construction lenders won't touch a deal that has pre-started. Possible mechanics liens create title insurance problems. Best case, and at a minimum, the title company and lender would want construction to stop for the mechanics lien window of 60 days, after filing certain notices. The title company - [Types of construction loan builder contracts](https://e-constructionloans.com/what-type-of-contract-with-the-builder-is-allowable-when-obtaining-a-construction-loan/) - 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 - [What is a single close construction loan?](https://e-constructionloans.com/what-is-a-single-close-construction-loan/) - A single close construction loan, also known as a one time close construction loan, provides construction funding and is also the permanent financing. This is in contrast to a more traditional interim construction loan which would require "take out" permanent financing to pay it off. Single close construction loans have two basic structures. Our construction - [What is the difference between a lot loan and a land loan?](https://e-constructionloans.com/what-is-the-difference-between-a-lot-loan-and-a-land-loan/) - There is no universally agreed upon distinction in the industry. Our lot loan is generally a maximum of 10 acres. We can go to 20 acres if the property is in a subdivision of similarly sized parcels, as demonstrated by recent comparable sales of vacant parcels. On all lot loans, no structures are allowed on the property, - [How do we qualify for a construction loan?](https://e-constructionloans.com/how-do-we-qualify-for-a-construction-loan/) - There are two main elements of qualifying for a construction loan, the property and the borrowers themselves. In regard to the property, it should be an owner occupied single family residence (some programs allow owner occupied duplexes), or a second home. It should be clear from the circumstances that the borrowers intend to occupy the - [Can will build a log home or other kit home?](https://e-constructionloans.com/can-will-build-a-log-home-or-other-kit-home/) - The short answer is yes, you can get a construction loan to build a log home. We've done them. The problem is that the property has to be appraised, and it must be demonstrated that log home construction is common for the area. Unfortunately, the way that is demonstrated is with typically with at least - [How Methods of Construction Affect Construction Lending](https://e-constructionloans.com/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 - [My land has to be paid off to get a construction loan.](https://e-constructionloans.com/my-land-has-to-be-paid-off-to-get-a-construction-loan/) - Your vacant lot does not have to be free and clear. The current value of the lot is added to construction costs and prepaid soft costs. Total costs are then compared to what the house would be worth if completed already as planned, as demonstrated by an appraisal. Construction lending is back to the more - [California Lot Loan](https://e-constructionloans.com/california-lot-loan/) - Lot loans and California lot loans. Vacant lot loans - [Can we start construction, and then get a construction loan later?](https://e-constructionloans.com/can-we-start-construction-and-then-get-a-construction-loan-later/) - This is a bad idea for many reasons, but sometimes borrowers must start due to the permit process. If this is the case, and you have to start grading, and maybe have to do the foundation, we would suggest a separate contract with the builder. Contact a local office of First American, Fidelity or another - [Lot Loan Refinance](https://e-constructionloans.com/lot-loan-refinance/) - We can do a refinance of a vacant lot on Lot Loan Program #1. There can be no cashout, so we can only refinance your current balance plus closing costs. This also means no money for plans, permits or construction on a lot loan refinance, even if you are not walking away with cash. A - [Contingency Reserve](https://e-constructionloans.com/contingency-reserve/) - A contingency is an addition to the cost breakdown, usually based on a percentage of the hard costs, to be used to fund changes during the build. For example, the borrower decides half way through the build that rather than granite tile, they want granite slab in the kitchen. They can either pay that out - [Interest Reserve Accounts](https://e-constructionloans.com/interest-reserve-accounts/) - An interest reserve account is another line item in the cost breakdown that is used to pay interest during the construction period. A construction loan with an interest reserve account essentially uses borrowed funds to pay interest on itself. Interest is estimated based on the expected rate during construction, the expected construction period, the loan - [How Construction Loan Draws Work](https://e-constructionloans.com/how-construction-loan-draws-work/) - All bank construction loans disburse money subsequent to the work being done, and interest is charged just on the amount disbursed. Some private money construction loans charge interest on the entire loan amount from the date of funding, but banks can't do that. In the past, there were some construction lenders who would impose a - [Do we have to sell our current home to qualify for a construction loan?](https://e-constructionloans.com/do-we-have-to-sell-our-current-home-to-qualify-for-a-construction-loan/) - Assuming there is no question of occupancy on the new home to be constructed, if you earn enough income to cover the PITI (principle, interest, taxes and insurance) on both homes, the answer is no. Even if you can't cover both payments with debt ratios that meet program guidelines, you may still qualify. Before the - [Construction Loan Appraisals](https://e-constructionloans.com/construction-loan-appraisals/) - For a construction loan, the appraisal is done from the plans and cost breakdown. To call it a "future value appraisal" is a misnomer in some ways since the comparable sales reflect the current market, and no attempt is made to peek into the future. The appraised value should reflect what the property would be - [Builder Approval](https://e-constructionloans.com/builder-approval/) - To be an approvable builder, the builder must be a licensed GC in the state where the property is being built. They must have "happy homeowners" for references, presumably based on jobs similar in scope to the new construction project for which they seek approval. Vendor and bank references are sometimes required as well. A credit - [Construction Loan Rates](https://e-constructionloans.com/construction-loan-rates/) - Explains contruction loan rates, how they change, and how they are determined. - [SPEC construction loans](https://e-constructionloans.com/spec-construction-loans/) - A SPEC construction loan is an interim construction loan only, and not the permanent financing because the exit strategy is to sell the property. "SPEC" here is short for "speculating", because the builder or investor is speculating that they can sell the property at a profit. For this reason, the builder or investor is ## Pages - [Home Page](https://e-constructionloans.com/) - Construction Loans | Land Loans | Lot Loans Since 2000 Since 2000 we have specialized in construction loans, lot loans, and vacant land loans in the Western United States. We do single close construction loans for ground-up construction starting with a vacant lot or a tear down, as well as single close construction loans for - [SPEC Construction Loan Program #5, available in 22 states.](https://e-constructionloans.com/construction-loans/construction-loan-5/) - Construction loans in California. Lot loans. Rates quoted. California construction loan experts. Remodel loans, rehab loans and land loans. Helpful links and content. - [Multifamily Construction Loan Program #4](https://e-constructionloans.com/construction-loans/construction-loan-4/) - California Construction loans. Lot loans. Construction loans California. Land loans. Construction Loan. Single close construction loan. - [Construction Loan Program #3 for non-GCs acting as their own GC](https://e-constructionloans.com/construction-loans/construction-loan-3/) - California Construction loans. Lot loans. Construction loans California. Land loans. Construction Loan. Single close construction loan. - [Owner Occupied Construction Loan #2](https://e-constructionloans.com/construction-loans/construction-loan-2/) - California Construction loans. Lot loans. Construction loans California. Land loans. Construction Loan. Single close construction loan. - [Owner Occupied Construction Loan #1](https://e-constructionloans.com/construction-loans/construction-loan-1/) - Calfornia Construction loans. Lot loans. Construction loan California. - [Construction Loans](https://e-constructionloans.com/construction-loans/) - Construction loans in California. Lot loans. Rates quoted. California construction loan experts. Remodel loans, rehab loans and land loans. Helpful links and content. - [Lot Loan #4](https://e-constructionloans.com/lot-loans/lot-loan-4/) - California Lot Loans and Lot Financing: Rates and Programs. - [Lot Loan #2 15 YEAR FIXED. CASHOUT NOW AVAILABLE.](https://e-constructionloans.com/lot-loans/lot-loan-2/) - California Lot Loans and Lot Financing: Rates and Programs. - [Lot Loan #1](https://e-constructionloans.com/lot-loans/lot-loan-1/) - California Lot Loans and Lot Financing: Rates and Programs. - [Lot Loans](https://e-constructionloans.com/lot-loans/) - California Lot Loans and Lot Financing: Rates and Programs. - [Land Loans](https://e-constructionloans.com/land-loans/) - California Land Loans and Land Financing: Rates and Programs. - [Land Loan #4](https://e-constructionloans.com/land-loans/land-loan-4/) - California Land Loans and Land Financing: Rates and Programs. - [Lot Loan #3.](https://e-constructionloans.com/lot-loans/lot-loan-3/) - California Lot Loans and Lot Financing: Rates and Programs. - [Land Loan #2 CASH OUT ON LAND WITH NO INCOME DOCS OF 720+ CREDIT](https://e-constructionloans.com/land-loans/land-loan-2/) - California Land Loans and Land Financing: Rates and Programs. - [Land Loan #1](https://e-constructionloans.com/land-loans/land-loan-1/) - California Land Loans and Land Financing: Rates and Programs. - [Land Loan #3](https://e-constructionloans.com/land-loans/land-loan-3/) - California Land Loans and Land Financing: Rates and Programs. - [Privacy Policy](https://e-constructionloans.com/privacy/) - Privacy Policy Last Updated: 04-10-2023 e-constructionloans.com (the "Website") respects the privacy of our users ("you"). 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California construction loan experts. Remodel loans, rehab loans and land loans. Helpful links and content. - [About Us](https://e-constructionloans.com/about-us/) - Since 2000 we have specialized in construction loans, lot loans, and vacant land loans in the Western United States. We do single close construction loans for ground up construction starting with a vacant lot or a tear down, as well as single close construction loans for rehab, remodel and additions. Most construction loan programs are ## Categories - [Construction Loan Questions?](https://e-constructionloans.com/category/construction-loan-questions/) - [Construction Loan Articles](https://e-constructionloans.com/category/construction-loan-articles/) - [Construction Loan Myths and Misconceptions](https://e-constructionloans.com/category/construction-loan-myths-and-misconceptions/) - [Lot & Land Loan Questions](https://e-constructionloans.com/category/lot-loan-and-land-loan-questions/)