Stop 04 · Builder
Same step-by-step engine as the loan desk — no map. Answer the file, see the GC profile a construction lender will fund, then hire against that spec.
On the path · Builder
Tell us the market and the kind of house so we can spec the GC a construction desk will fund.
State you will build in
Occupancy
Construction type
Hard-cost budget
Hiring
On a one-close loan the GC is not a vendor you pick after closing. The lender, the appraiser, and the inspector all have to live with that contractor for 12–18 months. Hire like the loan depends on it — because it does.
| Type | What it is | What the desk wants |
|---|---|---|
| Fixed price | One number for the defined scope | Cleanest for one-close. Scope must be complete. |
| Cost-plus with NTE | Cost plus fee, capped | Waterstone and others will often take this if the cap is real. |
| Open cost-plus | No cap | Usually will not fund. There is no budget to appraise. |
Guides
License, insurance, resume, and a contract the inspector can follow are credit overlays — not paperwork theater.
On a one-close loan the GC is in the file for 12–18 months. Underwriters look at license status, similar jobs, claims, and whether the contract has a real cap. A gifted remodeler stepping into a $1.4 million custom home is a condition, not a color choice.
Ask for a resume of similar size and method in the same county, not a 2014 parade home two states over. Call the last three owners. Walk a job under construction and a finished one.
If the builder cannot produce W-9, GL, worker’s comp, and a certificate that can name you and the lender, they are not lender-ready. Find that out before the appraisal, not at closing.
Open-ended cost-plus is usually un-fundable because there is no budget to appraise.
A fixed-price contract on a complete spec is the cleanest construction-to-perm file. The appraiser, the inspector, and the draw schedule all have a number to work against.
Cost-plus with a not-to-exceed cap can work when the cap is real and the allowances are specified. Cost-plus with no cap is a running tab. Most construction desks will not lend against a running tab.
If your GC “doesn’t do fixed price,” get an NTE and a line-item budget that matches the plans. Allowances without specs are how a $40,000 kitchen becomes a $95,000 kitchen without a change-order trail.
Napkin sketches produce three different dwellings. A permit set produces three prices.
Send every GC the same drawings, the same specs, and the same allowance list. If one bid is $180,000 lighter, it is usually missing a mechanical package, a foundation, or a finish level — not a bargain.
Compare exclusions, not just the bottom line. Site work, septic, driveway, appliance package, and permitting fees hide in the footnotes. The cheapest bid that excludes the well is not the cheapest house.
The construction loan will fund the contract you sign, not the bid you liked. Align the winning number with the appraisal and the draw schedule before you celebrate.
Large deposits, pre-starts, and “we’ll figure finishes later” are how 12-month loans become 19-month modifications.
A GC who wants a large deposit before materials are on site, or before the loan is closed, is asking you to be the bank. Construction draws exist so you are not.
Starting grading “so we don’t lose the crew” before closing is a pre-start. Many one-close programs will not fund work already in the ground. You can paint yourself into a cash job without meaning to.
Unspecified finishes slow inspections and spawn change orders. Every change order that raises cost needs either extra cash or a loan modification. Both take time you may not have in the construction period.
Licensed-contractor experience is what most construction-to-perm overlays actually mean by “you can build it.”
Plenty of capable homeowners want to GC their own house. Most one-close construction lenders still require a licensed, experienced builder on the contract. Owner-builder is often a separate program, a portfolio desk, or a cash job.
When it is allowed, the overlay is usually a license in that state or a resume of similar completed work — not “I remodeled a kitchen.” The inspector and the appraiser still need a professional they can call.
If you are not licensed and you do not have that resume, hire a GC the construction desk will fund. Saving the builder’s fee is not a savings if the loan never closes.