Residential Construction Lending is a form of Asset-Based Lending whereby funds are advanced based upon the successful completion of various phases of the real estate project and other requirements being met. Many problems can occur during construction that can leave lenders highly exposed unless they are unwritten and managed properly.
The common borrowers of Residential Construction Loans are: Individuals constructing their single family residences (Owner/Occupant); Developers who transform raw land into improved property suitable for constructing homes and Builders of 1-4 family residences. We will examine the characteristics and risks inherent with these borrowers; how to underwrite them and the real estate project under construction. This course is designed to provide fundamental and proven techniques to minimize these risks.
Specifically, the course will cover the following topics:
- Prerequisites for Successful Construction Lending
- Analyzing and Underwriting the Owner/Occupant
- Analyzing and Underwriting the Builder/Developer Overview of the Actual
- Development and Building of a Residential Unit
- Structuring the Construction Loan
- Managing Construction Loan Advances
- Construction Lending Documentation
- Problem Areas in Construction Lending
What You’ll Learn
- Specifically, the course will cover the following topics:
- Prerequisites for Successful Construction Lending
- Analyzing and Underwriting the Owner/Occupant
- Analyzing and Underwriting the Builder/Developer
- Overview of the Actual Development and Building of a Residential Unit
- Structuring the Construction Loan
- Managing Construction Loan Advances
- Construction Lending Documentation
- Problem Areas in Construction Lending
Who Should Attend
Commercial Lenders, Consumer Lenders, Credit Analyst, Senior Loan Officers, Senior Credit Officer, Loan Review Personnel, Internal Auditor, Branch Managers and Real Estate Lenders.