construction loans ?

[Barry B.]

Is there a construction loan expert on the forum ? Besides the fact that I need to talk to one, I have a few questions that other may be able to answer -

1. What sort of guarantee do banks look for in giving a construction loan ? Can you put up the lot that you are constructing on and/or other property as Collateral ? 
2. Can someone, not on the title of the lot give a loan guarantee ? 
3. Is it OK for an LLC to own the lot and get the loan against the LLC, maybe with a personal guarantee ?
4. Anything else the lenders look for, besides the credit history etc to approve a loan ?

Thanks in advance for your input.

[Barry B.]

Hey @Matt K. I have not got my loan yet but I think I do understand the process now. I am in the process og forming my LLC and closing escrow on a lot.

Yes an LLC is the easiest thing to fund or you can do it an individual too, as long as your income or the income of the LLC members adds up to the loan installment payment requirements. While during construction the payment is interest only, the bank may look at your ability to make full mortgage payments beyond the construction process. @Upen Patel was very helpful in explaining the process, you might want to connect with him. Cheers