Residential construction lending is expected to expand given the shortage of existing homes for sale and growth in the typical age group for first-time home buyers. In many markets, there is extensive remodeling that is maintaining a large share of projects. This program provides an overview of the major issues involved in administering and monitoring consumer or residential construction loans, primarily to individuals having a home built or remodeled.What You'll Learn:

• Construction risk and how is it mitigated
  
• What is the type of project (full construction vs. repair/remodel)?
  
• Due diligence needed, beyond a conventional mortgage application and underwriting
  
• Construction contract and cost estimate issues (Description of Materials form)
  
• Contractor credentials and qualifications
  
• Plans and drawings
  
• Survey
  
• Title insurance
  
• Appraisal issues
  
• Typical loan structuring, interest rate and fees
  
• Construction loan agreements
  
• Issues with draws and inspections, including cost over-runs and lien priority
  
• How is the construction loan going to end (get repaid)?