Construction Loans Checklist
Whether you are building from the ground-up or doing a major renovation, the following documents are likely to be required by a lender. A rent roll will usually not be needed as construction loans are not dependent upon the income of the subject property. However, you will need to show at least 10% of the construction cost in cash reserves. Most construction loans do not have payments during construction, and interest is capitalized.
If your loan calls for interest-only payments, you must have 9-12 months' reserves for these payments at time of application. This is in addition to any down payment required for a purchase transaction and the construction reserve mentioned above.
Borrower Details:
- Borrower ID
- Personal Financial Statement (PFS) including Schedule of Real Estate Owned (SREO)
- Rent Roll of Subject Property if currently tenanted - Commercial or Multifamily
- Credit Report (Soft Pull)
- Property Operating Statement (if operating - 2 years and trailing 12 months (T-12))
- Personal and Business Tax Returns (2-3 years)
Project Details:
- Scope of Work/Budget
- General Contractor Details, Resume, and Project History
- Borrower Project History (if any)
- Building Plans/Visuals
