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What documentation is needed for a Construction Loan?

The documentation needed for a construction is not that much different than a “regular” loan? While every client’s items list will be different and the items below are not a complete list, typical items will be:


Unless your project includes just interior work with no change in the floor plan, you will need plans that include floor plans with dimensions. If the exterior of your home will change, elevation plans showing the outside are needed as well. More extensive plans used for permits or final construction are not needed. Essentially the appraiser needs to understand how big the home will be, how many rooms, and what it will look like on the exterior.


A budget is a financial plan for your entire project. It breaks out the different costs for various aspects of your project. It’s important to estimate these costs as accurately as possible because the loan will disburse draw funds based on how these costs are individually estimated and broken out during the construction phase. If there are costs outside of your contract with the general contractor (AKA owner funded items), they will need to be supported with actual bids.

Specifications (Specs)

While a budget lays out how much you will spend on various items, it doesn’t lay out specific details about the items such as what type of flooring in each room. A detailed spec sheet gives the appraiser additional detail to accurately appraise the end value of the home. While a spec list is not required, it is highly advised to have one available for the appraiser so he/she can appraise the home as accurately as possible.


A contract between you and your builder should contain a description of the project and the financial terms you have agreed to. A contract is required and essential to a successful project. The contract should minimally contain the price, the timeframe, payment method, how changes are handles, and what happens if you have a disagreement amongst other items.

Income Items

Income items will vary depending on how income is documented. Possible items will include:

  • 30 Days recent pay stubs

  • Two years of W2s

  • Two years of personal tax returns

  • Two years of business returns (if 25% or more owner) with K-1s

Asset Items

Two months of bank statements

Most recent quarterly statement for retirement accounts

Document any large deposits or transfers in bank statements

Who's Behind The Loans

Loan Program

Loan Process

Construction Phase

Construction Topics



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