Peter Cook Mortgage


General Contractor/Builder Authorization Process

Policy:

Peter Cook Mortgage Construction Lending must authorize the General Contractors/Builders for the One Time Close program to ensure that the General Contractor/Builder has the background to complete the construction phase of these loans on time and within budget. To accomplish this, the General Contractor/Builder's experience should reflect a history of completing projects as planned as well as proper payment to sub-contractors and material suppliers.  

Authorized General Contractors/Builders should be able to use their credit lines at suppliers to carry the project to the appropriate percentages of completion for disbursement. No advances are allowed as funds will only be disbursed for completed work.

Procedures:

  1. The originating Branch/Correspondent must assemble the following items and forward to the Regional Construction Lending office along with the General Contractor/Builder's Information and Reference Form to complete the qualification process.
    • The General Contractor/Builder must fully complete General Contractor/Builders Information and Reference Form.
      • This form must be completed entirely, listing all information requested including names, addresses, phone numbers, and social security numbers.  This form is used to complete the approval process.
      • IF A GENERAL CONTRACTOR/BUILDER REFUSES TO GIVE ALL APPROPRIATE INFORMATION (INCLUDING SOCIAL SECURITY NUMBERS), THE GENERAL CONTRACTOR/BUILDER CANNOT BE AUTHORIZED FOR THIS PROGRAM.
    • Obtain Year-End and Year-to-Date Financial Statements.
    • Builder's Risk's and General Liability Insurance
    • Contractor's License, if applicable.
    2.
  2. A decision will be made by Construction Lending within 24-hours of receiving the above information.
  3. Contact the Builder Liaison in Construction Lending with any questions concerning the General Contractor/Builder information requested or the authorization status.
  4. Construction Lending  maintains an "authorized" General Contractor/Builder file for all General Contractor/Builders submitted. Once authorization is completed, the General Contractor/Builder will need to update their information annually.
    5.

There are two separate processes for underwriting One Time close loans.

  1. Permanent (credit) underwriting - completed through normal underwriting process.
  2. Construction review process - completed by the Construction Lending Department.
    3.


Peter Cook Mortgage's One Time Close loan program is not available to General Contractor/Builders on a "spec"  basis and is not available to be used as interim financing.  ONLY "PRE-SOLD" PROPERTIES ARE ELIGIBLE FOR THIS PROGRAM.

NOTE:  OTC transactions are not the same as a Construction to Perm transaction.  A Construction to Perm transaction is defined as when a borrower is converting an interim construction loan with an outside lender into a permanent mortgage.

Follow applicable loan product guidelines. The maximum LTV allowed on the One Time Close program is 95%.  OTC loans must also meet the following guidelines regarding reserves and minimum credit score.