Construction

Contract Price Input the contract price as indicated in the construction contract. 122 Endorsements Endorsements allow for a predetermined number of draws during the construction period. The charge for each draw is collected in total at closing. Input the estimated number of months of construction and the fee amount for each endorsement. Construction Costs Input the total estimated costs expected to be incurred in the completion of the construction project. This includes land, labor and interest reserve amounts. Completion Date Input the estimated completion date of the construction loan in an MM/DD/YYYY format. Extension Months If the lender permits the borrower to extend the construction completion date, input the number of months here. Extension Fee Input the applicable fee charged by the lender for extending the construction completion date. Advance Amount Input the expected dollar amount of the initial disbursement of funds. The initial disbursement could be used to pay off the current lot loan lender (if applicable), or it may be used for the items listed in the draw schedule. Initial Deposit Input the total dollar amount that the borrower has pledged to deposit into a separate account. This amount is additional security for the loan and will be used after all the funds of the Lender have been advanced. Direct Site Costs Input the total expected dollar amount of the costs associated with labor and materials used for the actual construction of the home. This is also known as "Hard" or "On-Site" costs. Wire Amount Input the total expected dollar amount to be wired to the closing agent once the lender has approved the pre-funding package. RTP Margin This is the roll-to-perm margin. If the investor offers a lower front-end interest rate during the construction period and increases the interest rate when the loan rolls to a permanent status, input the additional percentage in this box. Disbursement Agent Enter the name of the disbursement agent. Calculate Interest Method Select the method used for calculating the interest due during the construction period. Valid options include: Blank Actual Days Whole Months Interest Reserve Included (but not required) Check this box if an interest reserve amount is part of the construction loan and the borrower is given the option to make interest payments as they become due. Start Rate Input the construction note rate (up to four decimal places). (Note: This field is not used for variable rate construction loans.) Interest Reserve If an interest reserve amount is a part of the construction loan, input its dollar amount here. Margin Input the percentage rate (up to four decimal places) of the margin that applies to the construction period of this loan. Interest Reserve Account is Select the option to indicate the Interest Reserve Account status at the time of construction closing. Your options include: Blank None (not required) Required Included but not required Index Input the percentage rate (up to four decimal places) of the index that applies to the construction period of this loan. Estimated Interest Input the dollar amount for the total estimated interest that will be due during the construction period. Term Input the number (in months) of monthly payments to be made during the construction period of this loan. First Payment Date Input the date on which the first payment of construction interest will be due. Input the date in an MM/DD/YYYY format, or select a date using the button to the right of the field. Interest Rate Change Date (for ARM Construction Loans) Input the date when the construction interest rate is first scheduled to change. The interest rate change date is equal to the first day of the month following the first full month after the loan closes (e.g. loan closes 1/23/08, first interest rate change date is 3/1/08). Input the date in an MM/DD/YYYY format, or select a date using the button to the right of the field. Maturity Date Input the construction maturity date. When the "Actual Days" method has been selected (in the Calculate Interest Method field), the date provided in this data field will be used to calculate the estimated construction interest due. Input the date in an MM/DD/YYYY format, or select a date using the button to the right of the field. Bridge Loan A bridge loan is a loan that allows the borrower to access the equity in their current primary residence (which is intended to be sold) for the down payment of a construction-to-permanent loan. Enter the information here that applies to the bridge loan. This includes the date, dollar amount, address and legal description of the subject bridge property. Contractor Input the applicable contractor information. Architect Input the applicable architect information.

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