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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