Whether you are just thinking about building, buying a lot, or have already started construction, we will customize a financial solution for you from the ground up.
- lot loans
- construction loans, including single close loans
- construction to permanent loans
- home improvement loans
- builder speculative loans
We’re construction lending experts and assist from groundbreaking to housewarming. BOCM will prepare your loan application package for optimal financing. Construction loans are often disbursement loans, meaning you’ll be reimbursed as progress is made. Interest is charged only on the disbursed balance, not the whole loan amount. Borrower’s are billed monthly and may either make a payment or the funds can be taken from an interest reserve account established at closing.
In addition to standard credit documentation, on a construction loan, you’ll need to provide the following:
- Final plans and specifications. These are needed to obtain an appraisal.
- Purchase contract for the lot or closing statement if you already own it.
- Description of materials.
- Line Item Cost Breakdown (form available on our website, under FORMS)
- Builders construction contract
- Copy of Builder’s License
- Builder’s Statement or Application for Lender Approval.
Follows are some questions, the answers to which will be key to assisting you:
- Will you occupy the home you are building?
- Are you planning to build the home yourself (owner-builder)?
- Have you completed a line item cost breakdown?
- Have you put out bids for the construction?
- Does your builder meet the lender's criteria?
- Are your architectural plans preliminary or do you have a set of working drawings?
- How big of a home are you planning to build?
- How much are your soft costs and what is included?
- How much are your hard costs and what is included?
- What is the future value of the home you are building?
- Are you maximizing your property's value or are you under or over building for the area?
- How much have you spent so far?
- Do you have enough cash or equity into the project to qualify for a loan?
- Do you have copies of paid receipts including cancelled checks for all items you have pre-paid?
- Have you accounted for an interest reserve?
- Have you accounted for all of the closing costs?
- Are you including Landscaping and Hardscaping costs in your budget?
- Do you plan to live in the home for a short or long term?
- Have you speculated out each and every detail of the build down to the doorknobs and hinges?
- What is your break ground date?
- What is the foundation type? Are you on a sloped, hill or flat lot?
- What type of home are you building (stick built, log or kit home, modular, panelized, etc.)?
- What is the zoning of your property?
- Are you a licensed general contractor?
- Have the utilities been brought to the property yet?
- Do you have a Design Review Process for your neighborhood?
- Do you have a Home Owner's Association?
- Are you in a flood zone?
- What type of area is your lot (rural, urban or suburban)?
- Do you know the permitting process for your area?
- Have you already begun construction?
- Is your lot bare land or are there any structures currently on the property?
- Do you have the correct insurance policies?
- Is your total cost to build more, less or equal to the future value of the home you are building?
- Are sales comparables of similar size and valued homes available for your neighborhood?
- Is the type of home you are building typical for the area?
- Is your construction contract based on a fixed price or time and materials?
- Is your income enough to qualify for the loan amount you need?
- How is your credit?
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