Residential Construction Lending
Course Number: Webinar
Course Code: n/a
Residential construction lending continues to expand slowly, along with the economy, with remodeling maintaining a large share of projects. This program provides an overview of the major issues involved in consumer or residential construction lending, primarily to individuals having a home built or remodeled.
-What is construction risk and how is it mitigated?
-What is the type of project?
Full construction vs. repair/remodel
Owner as borrower, hires a builder
-What additional due diligence is needed, beyond a conventional mortgage application and underwriting?
Construction contract and cost estimate issues (Description of Materials form)
Contractor credentials and qualifications
Plans and drawings
-Loan pricing and structuring
Typical interest rate and fees
Construction loan agreements
-Issues with draws and inspections, including cost over-runs and lien priority
-How is the construction loan going to end (get repaid)?
Audience: Consumer lenders, mortgage bankers, private bankers, small business lenders, commercial lenders, credit analysts, loan review specialists, special assets officers, lending managers and credit officers involved in the consumer lending process. Also intended for support personnel involved in the administration of residential construction loans.