What does
the borrower do if an extension of the construction loan term is
needed?
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 the CTP Customer Service Team
30 days prior to the required completion date if the construction is
not at least 90% complete.
Is there
a fee if an extension is needed?
YES, there
is a fee associated with an extension of the required completion
date.
The fee is
·
0.50%
of the loan commitment amount per month as provided in Section 3.1
of the Construction Loan Agreement or,
·
0.25%
of the loan commitment amount per month if the borrower agrees to a
1 year pre-payment penalty
What is
required to roll the construction loan to a permanent loan?
Loans are
rolled to the permanent phase effective the first of each month. The final Draw Request should be received no later than the
end of the construction completion month.
Our Roll-to-Perm Department will contact the borrower once
the final disbursement has been made.
The borrower may also contact us to discuss roll-to-perm
options.
When the
final Draw Request is made, the Loan Administrator will prepare the
loan file for processing and reprising by the Roll-to-Perm
Administrator. Loans
are rolled to the Permanent phase effective the first of each month.
The loan would then be eligible to "roll' from the
construction phase to the permanent phase.
How is
the Final Draw Request made?
A final Draw
Request can be made when the home is approximately 90% complete. The borrower can request the remaining 10% of the
construction funds and roll the loan to permanent status, provided
that the Final Conditions (outlined in Exhibit C in the Construction
Loan Agreement,) are satisfied.
When
requesting the Final Draw, the following items must be submitted.
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