When ordering construction loan documents you can select the best option for the provided funds by reading the helper text that pops up once hover over the question mark of each option.
For Ground Up Max Construction: This option should be selected when the lender’s intent is for loan funds to be used for foundational work notwithstanding the size of the project. Loan funds may be used to construct any commercial, multifamily or residential (investment) property. Disbursement controls are the most stringent in favor of the lender and contemplate foundation work, e.g., after the initial disbursement of loan funds, among other requirements Borrower must satisfy before the lender is required to disburse more loan funds, Borrower must provide a foundation endorsement to the lender’s title policy upon the completion of each foundation for the project improvements which shows no encroachments or setback violations.
For Max Construction: This option may be selected when the lender’s intent is for loan funds to be used for the construction of any commercial, multifamily or residential (investment) property, but no foundational work is contemplated. Disbursement controls are equally as stringent in favor of the lender as used in Ground Up Max Construction but do not contemplate foundational work, e.g., after the initial disbursement of funds, furnishing a foundation endorsement to the lender (included under Ground Up Max Construction) is not among the requirements Borrower must satisfy before the lender is required to disburse more loan funds.
For Flex Construction: This option may be selected when the lender’s intent is for construction loan funds to be used for the construction of any commercial, multifamily or residential (investment) property, but no foundational work is contemplated and the lender is seeking less stringent controls, including, but not limited to less disbursement controls, in favor of the lender, in order to provide the most flexibility when working with its borrower. This option would be ideal for projects which are smaller in scale, e.g., construction of one residential (investment) property.
For Lot Development: This option should be selected when the lender’s intent is to improve a completely undeveloped lot in anticipation of constructing a subdivision thereon.
If your intent is to not order a construction loan, but there are still some required repairs then an interest only loan doc order with fix n’ flip is the other option.
For EZ Construction (fix n’ flip): This option may be used when the lender’s intent is for loan funds to be used for improvements in connection with a simple residential fix n’ flip project and no foundational work is contemplated. This option is available with Interest Only Loan Type on the Loan page of the order. From there you navigate to the Property tab and scroll down to turn on "yes" for Repair Agreement and then navigate to the Holdback Page. You can either fully disburse all funds at closing, or control disbursement with a Repair Holdback Agreement.
