How Long is the Construction Loan Process?

Mortgage and Lending with CFS Mortgage Corp.


How long is the construction loan process is a question I get a lot.  To answer this question a person has to first figure out when the construction loan process actually begins.  Construction projects can literally take a year to develop. Finding land, creating plans for the build, choosing a general contractor, filing for permits, etc..., are all item out side the construction loan process and actually need to be figured out before you start the construction loan.  Of course at some point during the initial phase you should secure an experienced loan officer that has completed no less than 25 projects.  This kind of experience saves time during the loan process and can help guide you through the numerous questions during pre-loan phases.  

Back to the question how long????   30 to 45 days, tops

Here is what you need to prepare in order to have success:

  1. Plans and Specs
  2. Contract between you and the General Contractor
  3. Know about your insurance responsibilities (contact insurance agent)
  4. Have Asset statements together (last two months)
  5. Documentation for all items paid during initial phase (architect bill, permit receipt, etc...)
  6. W2's, Tax returns, Business license, financial statements (Documentation to prove income)
  7. No doc loans available (at a premium to rate and cost)
  8. Cost break down of build
  9. Signed good faith estimate (know what loan you are getting into)

This list could probably go on, but with these items a qualified individual can get your loan into processing with in a couple of days and should have everything in line to close within 30 days.

For the record:

My quickest close, 8 business days on a construction loan.

Keep in mind there can be headaches for projects that are trying to be done at a 100% financing.  Every loans is a little different so be prepared.


Best of Luck,

Troy Schuricht



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Troy Schuricht

Troy Schuricht | CFS Mortgage
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