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

Time to Credit Approval ~ 24 hours

Initiate Form

al Loan Application

Time to Interim Approval ~ 5 working days

Appraisal Received – In

terim Loan Submitte

d

Time to Appraisal Receipt ~ 10 working days

“Builder P

ackage” Provided, Appraisal &

Title Ordered

Title Received – In

terim Loan Closes

Time to Interim Loan Closing ~ 5 working days

Construction can now begin!

Best case timeline from Initiate Loan Application to Commencement of Construction ~ 21 working days

Step #1Apply for Financing

We offer four convenient ways to apply for financing. Choose the option that best fits your individual needs.

Express Loan Application(by email or fax) Personal interview

(by appointment)

Telephone Interview(by appointment)

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

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

Step #2Interim Loan Secured

♦ 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

Determine Interim Loan Amount

♦ Yes, in many instances, 100% of all the costs can be financed!

♦ Appraisal & title ordered

♦ Appraisal received

♦ Interim loan submitted & approved

♦ Title documents received

♦ Closing documents sent to title

♦ Interim loan closes

Home Stretch

Step #3Commence Construction!

♦ 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

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.

♦ 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.

Interim Loan FAQs

♦ 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 RequestsDraw Requests

Steps #4 & #5Construction Complete & Permanent Loan Secured

♦ Your Caliber Funding Loan Consultant will assist you through permanent loan closing and move-in.

Stefen Brooks, NMLS #229142

Loan ConsultantP210.236.4005F855.638.4605

stefen.brooks@caliberhomeloans.com