Exclusive Single Close Construction/Permanent Loan

Becky Scholl
LOAN OFFICER
Office: 651-766-7059
Fax: 651-204-0053

MidCountry Bank: Experts in Construction Lending
Loans available for use with a General Contractor or Owner builders nationwide.

Single Closing:
One loan will finance the purchase of your lot, the construction costs and the permanent mortgage on your home. Only one set of documents are executed, which eliminates duplication of closing costs. Upon completion of the property, the loan is modified to reflect the permanent mortgage terms.

Interest Rate:
The interest rate for the construction period is fixed for 12 months. The borrower may lock into the permanent loan rate within 60 days of completion. Ask Becky Scholl for current rates and interest rate lock options. Interest may be tax deductible, please consult a tax advisor.

Interest Payment:
During the construction period, interest is charged on the disbursed funds only. Statements are mailed the first of each month, with payments due by the 15th of the month. Depending on the loan terms, construction interest may be paid out of an interest reserve.

Modification:
When the construction is 100% complete, the loan will be modified to reflect the permanent loan rate and terms. At this “modification closing”, final disbursements will be made, lien waivers collected, and escrows established.

Downpayment Requirements:
You may be required to make a downpayment at the initial closing. This amount is determined by calculating the difference between the cost of construction, including closing costs, less the loan amount plus any equities.

Overages:
Overages of material or labor estimates will require payment in cash by the borrower, or prior to modification, the loan amount may be increased to cover the overage amount. Any increase of the loan amount will require re-qualification and re-approval.

Compare a MidCountry Bank Single Close Construction Perm Loan with other loans. Check out the savings!

Property Type:
Single-family owner occupied.

Permanent Loan Product Type:
Available on all 15, 20, and 30 year fixed rate and adjustable rate products. Contact Becky Scholl regarding other available programs.

Loan-To-Value:
Up to 90%.

Sweat Equity:
Sweat Equity is allowed.

Lien Priority Coverage:
Must be obtained through a title company. Any improvements to the property may not begin until the loan is closed and lien priority coverage is in place.

Insurance:
Builders risk homeowners insurance rider must be provided at closing, listing MidCountry Bank as loss payee.

Draws:
Draws may be requested periodically during construction to pay for materials and labor completed. Inspections will be required prior to disbursements being made. All draw requests must be requested in writing and authorized by the borrower. Efforts will be made to fund draws within a reasonable amount of time.

Documentation Requirements:

• Standard credit documentation
• 2 sets of plans and specifications
• Signed sworn construction statement
• Lot purchase agreement, if lot is to be purchased at closing

• Schedule an appointment with Becky at MidCountry Bank to obtain more information regarding the program.
• Complete a loan application and provide the necessary credit documentation. Want to simplify and speed up the loan process?
  Click here to find out what documentation to bring with you when you apply for a loan.
• Select a builder and execute a building contract or obtain bids to complete a Sworn Construction Statement.
• Lot purchase agreement, if lot is to be purchased at closing
• Provide Becky with 2 sets of plans, specifications and a sworn construction statement.
• Loan is reviewed for approval.
• Title Company closes your construction/perm loan, records the documents, and takes priority pictures.
• Begin construction.
• Within 180 days of completion, lock into the permanent loan interest rate.
• Complete construction.
• Sign modification documents establishing permanent loan terms and conditions.
• Enjoy your new home!