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Showing posts with label tips on home building. Show all posts
Showing posts with label tips on home building. Show all posts

How to Get a Construction Loan


Acquiring a build to permanent or construction loan is very different than getting a normal mortgage loan. A mortgage loan is for those who are purchasing "real property" whereas someone applying for a construction loan is purchasing an intangible concept. Construction loans are a little more tricky. To better understand them, I've put together a list of links with the answers to most frequently asked questions. Click on the questions below.

What is the difference between a Home Mortgage and a Construction Loan?

How do I get a construction loan?

What kind of credit score do I need to get financed?

How can I build my credit?

Why is getting a construction loan challenging?

What do I need to apply?

Questions to Ask Your General Contractor

Since we are about to meet with potential contractors, we've done some research and found a lot of great questions to ask. Do you have anything to add?

What is your expected payment schedule?
-How much do you require down?
-How much do I keep as retainage until construction is complete?

How will the site be supervised?
-Is there a project manager?
-How often do you visit the site personally?

What is our Timeline?
-How many jobs are you doing?

How do you handle change orders?
-Can I get a written change order to lay out the additional cost and time?

Do you include a Broom Clause in the contract?

How much of the work do you do yourself?
-Who do you sub-contract to?
-Who pays the sub-contractors?
-How are sub-contractors supervised?
-Do your sub-contractors charge by the hour or by the project?

Do you and your sub-contractors have worker's comp?
-Who are you insured with?

Can I visit homes you are currently working on?
-Can I get a referral?

Do you provide a warranty?
-What happens if I have a problem after construction is complete?

Will you obtain all permits?

Can you give me a detailed list of charges including materials and labor?
-Can I get receipts?