About GMM Loan Programs Loan Officers Office Locations Documents Home This page has been created to outline the consumer construction products offered by George Mason Mortgage, LLC and to provide additional guidance and support to assist customers of George Mason Mortgage, LLC. Borrowers wishing to build a custom home or renovate their existing house can obtain financing through our Construction Lending Program. This program will take you from lot/property acquisition through the completion of construction or renovation, after which we can offer you the permanent financing that best fits your needs. Our standard construction loan provides 12 months of financing. Extensions are available when needed. The size of the dwelling and the time of the year are two factors that will affect your construction period. Acquisition/Remodel Loan Program    [ top ] This is a great option if you are purchasing a home that needs "fixing up" or you are planning a major renovation to your existing home. This loan covers the purchase or refinance and provides the funds for the work being done. The construction or renovation funds will be released in draws, as frequently as monthly. Once work is complete on the property, George Mason Mortgage offers many permanent financing ptions for you to choose from. Home Improvement Loan Program    [ top ] Many homeowners enjoy their current home and love their neighborhood but would like the additional living space, updated conveniences and energy efficiency that many older homes lack. Our home improvement loan program can help you obtain the items on your wish list while keeping you in the home you love. We accomplish this by lending off the "as complete" value of your property, not the value before renovations have been made. Application Process    [ top ] It will be necessary to make a regular mortgage loan application, just as it is for any residential loan, however, additional information will be needed, such as a lot purchase contract, or proof of ownership if you have already purchased the lot. You will also need to provide the prospective lender with a copy of the construction contract signed by both the borrowers and the builder. This should contain a draw schedule, as well as a bottom line cost of construction. You will also be asked to provide a set of plans and specifications that contain a list of materials to be used in construction, square footage designations, a draw schedule, and a cost breakdown. If all this paper work seems confusing, simply work closely with your custom builder - he or she will understand these requirements and assist in providing the correct documents to your lender. Documentation Checklist    [ top ] Lot and Project Information Copy of ratified listing, contract and addenda for lot purchase if not currently owned Copy of Deed and HUD-1 for lot if currently owned Copy of Site Plan and Survey Copy of Plans and Specifications, and completed job cost summary Copy of General Contractor Agreement Personal Information Address for all employers for the last two years Residence address for the last two years, including landlord's name, address, and phone number, if applicable Employment Information Address of present employer and a contact person to whom employment verification may be sent to Written explanation for any job gap during the last two years Relocation letter from employer transferees, including date, salary and relocation benefits If not employed at a current job for two years, provide address, contact person, phone number, working dates, and income range for previous employer Present salary verification; year to date pay stub and last two years W-2's and /or 1099's If any variable income, such as commissions, bonuses, overtime, dividends, is required for qualifying, provide last two years tax returns If self-employed (25% or greater interest), provide last two years corporate tax returns and year-to-date profit and loss statement If a student during the last two years, provide diploma and transcript Additional Income Rental income - provide copy of current one year lease Alimony/child support - provide copy of divorce decree and evidence of 12 months receipt of payments (only if used for qualification) Assets Provide copy of last three months statements for bank/investment accounts Provide copy of stocks or bond certificates Provide copy of title of vehicle if less thank five years old and owned free and clear Liabilities Provide credit card account numbers, balance and payment on all revolving accounts with a balance Provide names of institutions for all installment loans, along with address, account number, balance and payment amount Provide copy of ratified divorce decree for alimony or child support Sale of Present Home Copy of listing and copy of sales contract Construction /Permanent Loans Key Terms    [ top ] Understanding the following key terms can give you a good background as you enter into the custom home financing process. Appraisal - An appraisal will be required as a condition of the loan approval. The appraisal will be done by a qualified, licensed appraiser who will determine the value of the land and the home using the architectural plans and specifications. You will know in advance of construction what the home will be worth upon completion. Builder Draws - As the construction of the home progresses, the builder will require financial draws against the loan. These draws are used to pay subcontractors and other expenses associated with construction. The lender will require an inspection of the project at each draw requests to determine “work completion”, or “work in place”. Mechanic’s Lien Coverage and Title Insurance - Title insurance issued with Mechanic’s Lien coverage will be required on construction/permanent loans in the state of Virginia. In conjunction with each draw of funds by the builder, an interim title search will be conducted to determine that no mechanic’s lien has been filed against your property. Please consult your Title Insurance Company regarding this coverage. Builder’s Risk Insurance - A Builder’s Risk Insurance Policy will be required during construction by the lender. Please consult your Insurance Agent regarding this coverage and its cost. Interest Payments - All payments during the construction phase of your loan will be interest only and calculated off the outstanding loan balance. The payments will be billed monthly, 30 days in arrears. home | about George Mason | loan programs | loan officers | office locations | documents | privacy policy Equal Housing Lender Copyright © 2007, George Mason Mortgage, LLC