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In a situation where borrowers loan amount is greater than remaining costs to build, when does Pacifica South disburse these funds?

April 26, 2017borrowers build costs disburse greater loan PACIFICA remaining south

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In a situation where borrowers loan amount is greater than remaining costs to build, when does Pacifica South disburse these funds?

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This situation creates an excess equity position. If the equity is in the lot value, these funds will be held until the end of construction. If this excess equity is in prepaid construction funds, then borrowers will have the ability to draw on those funds during construction. The draw against these funds will be in connection to the percent of completion of the construction project. The excess equity disbursed to borrower at completion is limited to an 80% Loan-to-Value (LTV) restriction, and the loan being in good standing. If LTV is greater than 80%, these funds will be used to pay down the principal loan balance, and the new loan commitment will re-amortize.