To qualify for a construction loan, you'll typically need a good credit score (usually 680 or higher), a stable income, a low debt-to-income ratio, and a detailed construction plan with a realistic budget. You'll also need to make a down payment, usually between 20-30% of the total project cost. We'll also review your builder's credentials and experience.

Funds are disbursed in stages called "draws" as construction milestones are completed. Typically, there are 5-7 draws throughout the project. Before each disbursement, we conduct an inspection to verify that work has been completed according to plan. This ensures that your project stays on track and within budget.

A construction-only loan covers only the construction phase and must be paid in full or refinanced into a permanent mortgage when construction is complete. A construction-to-permanent loan automatically converts to a traditional mortgage once construction is finished, saving you the hassle of a second closing. At Trousdale Hard Money LLC, we offer both options to meet your specific needs.

Yes, construction loans can be used for major renovation projects, additions, or even tearing down and rebuilding on an existing property. The loan process is similar to new construction, but we'll assess the current value of your property and the anticipated value after renovations to determine the loan amount.

We recommend including a contingency fund of 10-15% in your initial budget for unexpected expenses. If costs exceed your loan amount, you'll need to cover the difference with your own funds. Our project specialists work closely with you and your builder to create realistic budgets and help avoid cost overruns whenever possible.