Home Build and Improvement Information and FAQs
What is a construction loan?
A construction loan provides borrower financing for the construction of a new home or a major remodel of an owner-occupied single-family residence or second home.
What is a one-time close loan?
A one-time close (OTC) loan finances the construction or major remodel of a primary residence or second home. After a single (one-time) loan finances the purchase of the lot and construction of the home, it converts to a permanent mortgage.
What is the Evergreen Digital Mortgage Advantage?
Evergreen offers a suite of digital mortgage tools to help simplify and streamline your home loan process. These digital tools include a mobile app, digital asset verification system, and eClose process.
Digital mortgage tools offer a fast, secure, and paperless way to provide the necessary information for your home loan. Often shortening your closing time, improving accuracy, and avoiding last minute surprises.
What is the general process for securing a construction loan?
It starts with a loan application and credit review. Your Evergreen Home Loans™ loan officer can help with both and provide a thorough review of your application and qualifying credit information, including credit rating, income, assets, and cash reserves. Many borrowers enjoy the peace of mind that comes with up-front credit approval.
Next comes a review of the construction project itself. Our experts will look at all documentation related to your project. Rest assured that a project review will not delay the credit review process.
Our experts will also determine an appraised value for your new home. If you prefer for us to order the appraisal for your loan application prior to providing your deposit to the builder, we can accommodate that request with a copy of the home order form and cost breakdown from the builder, a copy of the floor plan, and the appraisal fee. With receipt of the appraisal, your loan application will be reviewed again along with a review of your collateral.
What is a draw?
Funds to build your home are not disbursed to the builder all at once. Draws are provided to the builder for completed work to date. The builder is required to use all draw funds to pay the subcontractors and material suppliers for all work completed on your new home.
What can I do to avoid construction delays?
Working with an experienced builder and an experienced construction lender is the most effective way to avoid delays in your project. We know when potential delays can happen and we offer help in understanding how to minimize them or avoid them altogether. Ask us for details.