construction loan process

[Heidi Kimbrough]

I am in the midst of placing a manufatured home on my own property. I know that with the construction loan (as an owner/builder) I will have to have some cash reserves in order to pay for the projects upfront. My lender says that the loan will have a standard draw schedule. What does this mean? Will I have to pay for the permit fees ($15,000 "ish") upfront before reimbursement?
Thanks in advance for your help!

Respectfully,
Heidi

[rmurray]

WOW....$15000 permit fees!!!!!!!

There has to be some mechanism to work through this in your area...Most likely your dealer will front this money...He would have to if he wants to stay in business....Most customers do not even have $1500 much less $15000 cash available...Talk to your dealer...

Beside governements..all other contractors understand that they wait for the draws...With this high a permit fee..governement might actually wait to the second draw...ask them...They hold the big stick and can stop utility installation if they do not get paid..

The draw schedule usually means...draw 1...amount of the raw land....draw 2...amount of permits, land prep and foundation...draw 3 some percentage of the home...usually 75 to 80%...draw 4 all of the rest of the money...Each lender has his own specific schedule that they call standard..Check with them...