The JayMarc Blog

The Ultimate Guide to Custom Home Construction Loans

Categories: Home How To's | Posted: April 26, 2018

Information provided by Umpqua Bank, JayMarc’s preferred custom home construction lenderUmpqua Bank Logo

You’ve been dreaming, planning, designing — and now you’re ready to build your dream home. Umpqua Bank’s all-in-one custom construction loan will provide the financing you need in one easy step. And when your project is complete, the loan will automatically convert to permanent financing.

The Best Parts: Anytime throughout this process, your loan officer will be available to meet with you and your builder, to answer questions and explain the process. In addition, our custom construction team is available to you as a specialized resource.

  • Construction and permanent financing with a single closing
  • Adjustable rate loan for conforming and non-conforming loan limits
  • Borrow up to $3,000,000 (loan limit varies by State and County)
  • Up to 18 month construction period
  • Primary residence and secondary home financing available
  • Financing also available on new manufactured homes
  • Your land equity and pre-paid costs can be credited toward cash to close

Document Checklist: Here is a handy list of items that will be needed from your builder to ensure that the process runs smoothly and that there is no delay in getting started.

Document ChecklistBuilder Acceptance Information

  • Completed Builder’s Resume
  • Completed W-9 Form
  • Acknowledgment of insurance requirements
  • Copy of general liability insurance with a minimum $500,000 per occurrence. Umpqua Bank will be added as certificate holder prior to your first draw.
  • Copy of worker’s compensation insurance (if applicable)

Project Approval Documentation

  • Complete set of working plans, signed and dated by you and the builder to include the following: foundation plan, framing plan, site plan (plot plan), floor plan, all four elevations and well and/or septic, if applicable.
  • Construction contract, signed and dated by you and the builder to include the following: fixed price, scheduled dates for commencement and completion (event dates are acceptable), all change orders will be in writing and bank will be notified prior to any change implementation, payment method compatible with Umpqua Bank’s line-item disbursement method and subject property numerical street address or full legal description.
  • A detailed description of materials, signed and dated by you and the builder
  • Line item budget signed and dated by you and the builder
  • Subcontractor and supplier list for the project
  • Land purchase and sale agreement (if applicable)

 

Resources

For more information about the lending process, review the Custom Construction Loan FAQ HERE.

Document Checklist – download HERE

 

If you have any further questions about the custom construction lending process and would like to start a conversation, contact Billie Jo Cusack or Kevin J. Knudson from Umpqua Bank in Bellevue.

Billie Jo Cusack | NMLS 208640 | 425-732-4756 | billiejocusack@umpquabank.com | www.umpquabank.com/bcusack

Kevin J. Knudson | NMLS 924939 | 425-732-4755 | kevinknudson@umpquabank.com | www.umpquabank.com/kknudson

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