Income Documentation for Construction Loans

Income documentation requirements for a fully documented construction loan are no different than a conventional mortgage.

If you can document your income, then you will benefit from a relatively lower interest rate than a stated income loan.

Construction Loan Documentation

The pre qualification process for construction or rehabilitation loan programs, does not require any documentation. The only thing needed will be for you, to complete the simple, on line, Request form in the Get Started Page.

Once we have received your application, we will assign an expert construction or rehabilitation loan officer. The Loan Officer will immediately run a credit report, do the basic analysis, and contact you in the fashion you specified in your application.

Your loan officer will at this stage answer any questions that you may have, and clarify things which may need clarification. He or She will then rush you a completed loan application via Express Mail, for your signature.

The application package will not only include the application, but also a list of documentation that we will need, to continue processing your loan request. Also included will be a return pre paid Express Mail envelope.

The following documentation is normally required:

  • W2s for the past two years. All Borrowers.
  • Tax returns for the past two years. If self employed or if there is any income other than employment. All borrowers.
  • Current pay stubs. All borrowers.
  • Current P and L for self employed Borrowers.
  • A complete set of construction plans, signed by the contractor and the borrowers. Construction Loan Only.
  • A description of work to be done and the materials to be used. Construction and Rehabilitation Loans.
  • Line item cost breakdown prepared by the contractor. Construction and Rehabilitation Loans.
  • HUD1 Closing statement if property is currently owned by the borrower. Construction And Rehabilitation Loans.
  • Construction contract signed by all parties. Construction Loans Only.
  • Contractor Application, License and Credit Report. Construction Loans only.
  • A completed Construction Loan Budget Worksheet. Construction Loans Only.

If you are applying for a limited income documentation loan, then you will not include any income documents.