Understanding Property Qualifiers for Construction Loans

Class Overview

In this class, we will cover the essential criteria for property qualification under our construction loan programs. You will learn about the types of projects we finance, the requirements for a project to be considered "shovel-ready," and the types of properties and situations that do not qualify for our loans. By the end of this class, you will have a clear understanding of what projects are eligible for our fix and flip, construction completion, and bridge loans.

Questions and Answers

1. 1.    What does "shovel-ready" mean in the context of our construction loans?
   •    A) The land has been cleared and is ready for construction
   •    B) The lot is recorded in a subdivision or is a single parcel ready to build on with minimal clearing
   •    C) All permits have been issued and utilities are in place
   •    D) Both B and C
   •    Answer: D) Both B and C
2. 
   2.    Which of the following projects do we NOT finance?
   •    A) Single-family residences
   •    B) Raw land that needs utilities and roads
   •    C) Multifamily units with utilities in the street
   •    D) Mixed-use buildings with commercial on the first floor and residential above
   •    Answer: B) Raw land that needs utilities and roads
3. 
   3.    For multifamily projects, which of the following can be part of the loan?
   •    A) Clearing and grading for roads
   •    B) Building permits
   •    C) Utilities being brought in per building and parking
   •    D) Raw land preparation
   •    Answer: C) Utilities being brought in per building and parking
4. 
   4.    Which of the following is true about paper lots?
   •    A) They are ready for foundations to be laid immediately
   •    B) They typically need utilities and streets in place before construction can start
   •    C) They are raw pieces of land without any engineering done
   •    D) They can be financed for immediate construction
   •    Answer: B) They typically need utilities and streets in place before construction can start
5. 
   5.    Which types of homes do we NOT finance?
   •    A) Single-family homes
   •    B) Modular homes
   •    C) Townhouses
   •    D) Condos
   •    Answer: B) Modular homes

Conclusion

In this class, we reviewed the criteria for property qualification for our construction loan programs. We discussed what it means for a project to be "shovel-ready," the types of projects and properties we finance, and those we do not. Understanding these guidelines is crucial for ensuring that your projects meet our lending requirements. If you have any questions or need further clarification, please reach out to your account representative. Thank you for participating in today's class.