Construction Loan Documentation: Builder Contracts, Plans, and Draw Schedules
Construction loans require unique documentation including builder contracts, architectural plans, cost breakdowns, and draw schedules.
What the Lender Requires
- Executed builder contract or owner-builder contract
- Construction plans and specifications
- Cost breakdown (line-item budget approved by lender)
- Builder credentials (license, insurance, state registration)
- Construction appraisal (as-completed value)
- Draw schedule signed by lender and builder
- Land ownership documentation
How CTC Processes Construction Loan Documentation Requirements Files
- 01Confirm builder eligibility
- 02Submit plans and cost breakdown
- 03Order construction appraisal
- 04Establish draw schedule
- 05Open construction escrow
- 06Monitor draws
- 07Schedule final inspection and conversion
Common Conditions Related to Construction Loan Documentation Requirements
- Builder bankruptcy or licensing issues
- Cost overrun documentation
- Certificate of Occupancy or completion certificate
- Final inspection before conversion to permanent loan
- Change order documentation for mid-construction modifications
How CTC Handles Construction Loan Documentation Requirements
Construction loans require active management throughout the build. CTC monitors draw requests, coordinates inspections, and manages the conversion to permanent financing at completion.
Frequently Asked Questions
How many draws are typical in a construction loan?
4–6 draws aligned to milestones: foundation/framing, rough-in (plumbing/electrical), drywall, finish work, and certificate of occupancy. CTC coordinates each draw inspection and disbursement.
What is a construction-to-permanent (C2P) loan?
A C2P loan automatically converts from the construction phase (interest-only draws) to a permanent amortizing mortgage at completion. One application, one closing.
Can I be my own general contractor?
Some lenders allow owner-builder loans with stricter requirements — demonstrated construction experience and tighter LTV. CTC works with lenders who offer owner-builder programs.