Builders: Increase your profitablity

Benefits to the Builder
The OTC program is construction-to-permanent financing obtained by the borrower for the purpose of constructing a new home. The loan can be closed at any stage of construction.

Benefits to the Builder include no buyer fallout, the home is pre-sold and your credit line is not utilized, which allows use for other projects. Standard interest charges calculated into the sales price can become profit. Golf Savings Bank uses local inspectors.

Golf Savings Bank
Golf Savings Bank presents our One-Time-Close (OTC) Loan. It combines construction and mortgage financing for your clients, qualifying them for both at one time. So you can begin building sooner. And since this loan is made to your client, your own line of credit remains available for other projects. And that’s not all:

• Rollover to permanent financing guards against buyer fallout
• Lots of finance options, including fixed and adjustable rates
• Easy draw procedure to maintain cash flow
• Best of all, there’s no speculation: the house is already sold.

Here's How It Works

Easy registration process:

• Complete the Builder Registration Form
• Provide general liability insurance ($500,000 minimum)
• Provide copy of current builder license
  

What is required for project approval?

• Set of plans and specifi cations
• Fully executed contract between borrower and builder
• Detailed construction cost breakdown
• Lot survey or plot plan
  

Once the loan is approved and ready to close:

• A mandatory pre-closing conference call will be scheduled
  between the OTC department and the loan offi cer, borrower
  and builder
  

Closing process:

• Proof of Builder Risk Insurance must be provided showing a minimum coverage of loan amount or replacement cost
• Once the loan is closed, the loan amount cannot be increased When does the construction loan term begin?
• The construction term begins on the date the loan closes
• OTC loan funds are disbursed based on items completed
  

Disbursement process:

• All building permits must be in place prior to the fi rst draw
• The draw disbursements are based on the percentage of work completed
• All draw requests must be submitted to the OTC Department utilizing the Draw Request Form
• Draws are paid one of two ways; wired directly to the builder or borrower, or by check to the builder and borrower
  

What about change orders?

• All change orders over the amount held for construction must
  have prior approval by the OTC department
  

Final stages of construction

• At 80% of construction’s completion, a letter will be sent to both the borrower and the builder outlining the steps required prior to disbursing the final draw
• A 10% retainer is required; these funds are retained at a 90% disbursement level of the construction funds
• Any additional draws will cease until all of the required documentation showing the project is 100% complete
• Golf Savings Bank’s One Time Close Loan
  
  
  

For more information, email Mitch Roberts of Andy Thiel!

Golf Savings Bank
"Everything you'd never expect from a mortgage lender."

Golf Savings Bank is a subsidiary of Sterling Financial Corp. Mitch Roberts and Andy Thiel work from the company's Kirkland, Washington office located at 10230 NE Points Drive, Suite 530. Call 425.893.5721 for more information.