Construction Loans for Projects Already Underway
Can I get a construction loan to complete a project I started?
Yes, you can, but there are specific considerations to keep in mind. If you're in San Diego, Orange County, Los Angeles, or anywhere across the United States, securing additional construction funding requires proactive planning and meeting lender requirements.
What should I do if I need more funding before my project is finished?
The most crucial step is to secure additional funding before your current funds run out. Lenders value financial reserves almost as much as your credit score, Loan-to-Value (LTV), or Loan-to-Cost (LTC) ratio. It’s recommended to start the loan application process at least two months before you anticipate needing more funds.
Why do I need to provide extra documentation for a construction completion loan?
Lenders require specific information to assess the situation. This often includes:
- A letter of explanation detailing why you ran out of funds.
- A Line Item Cost Breakdown, which details what has been completed and what still requires funding.
- Photos of your project's progress to date.
Providing these details upfront can speed up the approval process.
Will title coverage be an issue if I started construction before acquiring a loan?
Yes, title coverage and lien priority could pose challenges for projects that began before obtaining a loan. Title companies will need to ensure a clear title for your project, which is more complicated when prior work has been completed. They may also require that you indemnify them against pre-loan liens. While this could be an extra step, having liquid reserves can make the process smoother for everyone involved.
What happens if I anticipate running out of funds soon?
If you’re worried about running out of funding during your construction project:
- Reach out to ConstructionLoans.com immediately.
- Be ready to provide the necessary documentation mentioned above.
- Start the loan process early to avoid delays in your build.
We’ve helped countless clients in San Diego, Orange County, Los Angeles, and across the U.S. complete their dream projects by securing the necessary funding in time.
How can I contact ConstructionLoans.com for assistance?
We’d love to help you. Give us a call anytime at (800) 688-2494 to explore your options. Don't wait too long to secure funding, as proactive planning is the key to a stress-free project completion.
