Construction Loan

[kwc1234]

We are about 3 months from completing our house. We have had to use numberous extentsions because our builder passed away during the build, and we finally got approval to finish it ourselves. It has been slow going. Today we got a letter from the bank that the loan is coming to maturity Sept, 30th.
We already have all the money we need and we will be paying the bank back some, but what does this mean for us if we are not finished?

[Richard A Hetzel]

Probably means taking a new, smaller construction loan for the remaining work, until it's finished enough to qualify for a permanent mortgage.

[kwc1234]

How much has to be done for it to quality for a permanent mortgage? Or what can be left undone?

[The OC Builder/Developer]

Dear kwc1234,

In order to get permanent financing (mortgage) typically you MUST have a CO (certificate of occupancy) issued by the local building department. This means that all work has been installed, inspected and the city (or local governing agency) has approved that the building is in a habitable and safe condition. With this you will get the release to have your electrical meter and, if applicable, gas meter set/installed.

I notice that you posted a few weeks back - what is the status?

Don