New Construction Product: Underwriting Guidelines

Property Types

Eligible and ineligible property types for new construction loans.

Eligible and Ineligible Property Types
Property types that qualify for new construction loans
Property Type
Single Family
Eligible
Yes
Special Considerations
No
Property Type
Multi-Family
Eligible
Yes
Special Considerations
No
Property Type
Townhouse
Eligible
Yes
Special Considerations
No
Property Type
Condo
Eligible
Yes
Special Considerations
Yes
Property Type
Leasehold Properties
Eligible
Yes
Special Considerations
Yes
Property Type
Vacation Properties
Eligible
Yes
Special Considerations
Yes
Property Type
Commercial Properties
Eligible
No
Special Considerations
N/A
Special Considerations
Additional requirements for certain property types
Leasehold Properties
Lease term must exceed loan term by at least 10 years
Condos
HOA documentation and approval required
Vacation Properties
Additional market analysis required
Rural Properties
Utility verification and access requirements
Property Zoning Requirements
Zoning and land use considerations

Zoning Verification

Property must be zoned appropriately for intended use. Verification required through zoning letter or municipal documentation.

Building Permits

All necessary building permits must be obtained prior to loan closing or as a condition of initial disbursement.

Utility Requirements

Property must have access to all required utilities (water, sewer/septic, electricity, gas if applicable). Connection fees must be included in construction budget.

Environmental Considerations

Property must not be in flood zone without appropriate mitigation. Environmental assessments may be required for certain properties.