What does the borrower do if an extension of the construction loan term is needed?
A. Loans that go beyond the required completion date are technically in default pursuant to the Construction Loan Agreement. If the loan has gone beyond this required completion date, all loan draws are on hold until an extension is granted. The borrower needs to contact us at least 30 days prior to the required completion date if the construction is not at least 90% complete.
Related Questions
- If a borrower sells his or her current residence during the construction term and wishes to pay-down their construction loan (principal reduction), how will Construction Loan One treat this?
- What if a borrower owns a lot free and clear and wants to get cash back on the equity from the construction loan?
- What does the borrower do if an extension of the construction loan term is needed?
