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How to Apply for a Construction Loan

We Abundance have access to both bank construction loans, and private money construction loans.   Bank constructions always have lower interest rate, with interest accrual based on amount drawn.  Banks can be skittish, with red tapes throughout the entire process – for example, they don’t generally allow owner-builders.  Private lenders are more flexible.  That flexibility comes with a price.  

We Abundance will explore bank construction loan options for you, and also offer you our in-house private money loan options.   We’ll put them side-by-side so you can make an informed decision. 

Here is what we need to start underwriting the file:


  • Project plans – e.g., size of the home, # of bedrooms, baths, garage, where it is in the permitting process, engineering drawings, elevations

  • Project financials – construction budget (contact us Abundance for sample), sales projection (if you plan to sell), timeframe, carrying costs, reserves

  • Proposed construction contract, with builder’s license and bond details

  • Material finishing list (contact us Abundance for sample)

  • City/county off-site development requirements (e.g., trees, sidewalk, street lighting, sewer connections)

  • City/county impact fees

  • Personal financial statement of the borrower principals (e.g., anyone who owns more than 25% of the ownership entity)

  • Last 2 years’ tax return for the entity, and the borrower principals and/or guarantors

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