Key Construction Loan Management Terms

Posted by Contract Simply on 8/13/18 4:23 PM

One of the main problems we’ve encountered in our work is the general lack of familiarity and understanding of basic construction loan terms. To be honest, we understand why the uninitiated could get confused when faced with a broad body of cryptic terms such as retainage or holdback provisions.

To cut through the noise, we’ve put together a list of most common terms in construction loan management, ordered alphabetically for your convenience.

Before we get into the thick of things, let’s begin by defining our field of work - construction loans.

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Topics: Construction Loan Management

Your Construction Loans Don't Get A Summer Vacation

Posted by Contract Simply on 8/7/18 5:06 PM

Is your office empty these days? For a large number of employees, summer vacation season is an important time of the year when they are able to get their head out of work for a while and simply relax.

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Topics: Machine Learning in Banking

What to Review When Originating a Land Development Loan

Posted by Contract Simply on 8/7/18 4:19 PM

Land development loans provide financing for the purchase of raw land, as well as its development for future construction or sale. Unlike residential and commercial construction, the goal of land development is not to present a finished piece of real estate, but to prepare it for further construction. The development of a lot includes improvements of the land itself, as well as the creation or the improvement of the surrounding infrastructure (power and water supply, plumbing, sewage, etc.) in order to make the site construction-ready.

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Topics: Construction Loan Management

What to Review When Originating a Residential Construction Loan

Posted by Contract Simply on 8/1/18 10:58 AM

Residential construction is the development of real estate for living whereas commercial building is intended for commerce. Traditionally, community banks handle the vast majority of residential construction loans. These are local or regional banks whose assets generally fall short of $1 billion, especially in the case of loans for single-family homes. Larger banks may also deal in residential construction loans, especially for larger housing projects, but their primary focus is commercial and other non-residential construction.

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Topics: Construction Loan Management

Construction Loan Administration Jobs for July 25 2018

Posted by Contract Simply on 7/25/18 7:47 PM

Contract Simply likes to share a few of the most current and interesting job opportunities for construction loan administration. These listings focus on construction administrative services, loan disbursement process, and construction administrator duties.  

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Topics: Construction Loan Administration, Construction Loan Management

What is a draw request?

Posted by Tim Ryan on 7/24/18 5:39 PM

Managing the flow of funds within a construction loan is much different than for traditional loans. Rather than receiving a lump sum check, construction loans pay out the loan amount over the course of the project. The installments are called draws, as the lender draws funds from the account. A draw request is necessary to ensure disbursement of the funds.

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Topics: Construction Loan Management

What To Review When Originating a Commercial Construction Loan

Posted by Contract Simply on 7/20/18 11:41 AM

With real estate market trends indicating a steady growth for the near future, interest in construction loans is bound to remain steady as well. This type of loan is given for the purpose of the construction of a project within a predetermined time frame, generally controlled by a supervised disbursement of the agreed sum.

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Topics: Construction Loan Management

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Helpful Resources

Contract Simply Construction Payments Report 2018

Contract Simply Kickstart Guide to Construction Loan Software

Will Mitchell talks construction lending and borrowing on Medium

Contract Simply Infographic on Construction Loan Administration

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