Construction Loan Application: Requirements & Process | [Your Company Name]

A construction loan can be used to finance a residential or commercial property. Depending on the size of the loan you are seeking, the requirements on a loan application will vary.

Construction Loan Application for a Residential Property

A residential construction loan will be used to build a new home. Usually, construction loans are used in conjunction with land loans. In order to secure this loan, you will need to apply with information on your credit, income and the amount of financing you need to finish your project. Usually, you will be required to show plans from a builder, along with three bids. You may be pre-approved for a construction loan, but the final loan contract will depend on the exact financing you need for your build.

Construction Loan Application for a Commercial Property

To build a commercial property, you will need a much higher-limit loan. In addition to an application, credit report and income statement, you will need a business plan showing the income you intend to earn from the property and how you intend to earn it. If your business is the one seeking financing, you will also need to supply financial statements to the lender. For a new business, your personal income will be used to determine eligibility.