Do I have to use my money before I can get a construction draw?
No. When you order a draw check you will mail or fax to us the draw request form and invoice to be paid. We will then mail you a check payable to your subcontractor and/or supplier. You can also pay for purchases with your own money and get reimbursed from the construction loan the next day.

How many times can I ask for a draw?
As many times as you like. There is no limit and there are no fees per draw.

Are inspections required for every draw?
No. During the loan the construction will be inspected periodically. There is no additional cost for these inspections.

In the event of cost over-runs, can I get an increase?
Initially, an allowance for cost over-runs should be built into the miscellaneous category of your loan however if an increase is still required, we can increase the loan, provided you qualify for the new loan amount.

How long is the loan?
Loan terms vary!  Our typical loan scenario is 6 months and if you need additional time extensions are available in 3 month increments.  We try to tailor the construction loan to meet our borrowers’ needs!

Can the loan start construction and I finish it later with my own funds?
No. The construction loan must complete construction. Any money you intend to use towards construction must be used prior to the construction loan.

Can the loan finish construction that has already been started?
Yes. We offer loans for partially-started homes.

Is this an interest only loan?
Yes. Every month you pay interest only on the outstanding balance. We do not provide escrow services; therefore taxes and insurance are your responsibility.

How much of a down payment do I need to qualify?
Your down payment is the equity you have into the land prior to our funding. In most cases if you own the land free and clear, no additional down payment will be required.

Can the cost of the land be paid from the loan?
Yes. Depending on the total equity in your project, it can qualify you to pay for a portion of the land either from a purchase agreement, land contract or mortgage.

What is your loan to cost percentage?
It varies depending on your credit score and your level of equity into the project prior to our funding.

What is loan to cost? How does it differ from loan to value (LTV)?
Loan to cost is the ratio between the purchase price paid for a property plus the cost to build then, compared to the loan amount.  This differs from the loan to value because LTV calculates the ratio between the loan amount and the appraised value. 

What is the lowest and highest loan amount?
It varies depending on your credit score and your level of equity into the project prior to our funding. The lowest is $50,000.00 and the highest is $500,000.00. Higher loan amounts will be considered on a case-by-case basis.

Do I need to be pre-qualified for a permanent loan prior to the construction loan?
No.

Can the Financial Assistance Fees be rolled into the loan amount?
Yes, if you qualify, the F.A.F or closing fees may be rolled into the loan amount and paid to Marflax Corporation when you activate your loan by making your first draw.