Updated over 4 years ago on . Most recent reply
Lender not allowing construction loan extension
I’ve been working on converting a single family to a multi using a construction loan. Lender has extended the loan twice already penalty free of any fees. Now we’re right at the finish line with about two months of work left, and lender is only giving one month to complete the project.
Worried we won’t finish according to the bank’s timeline due to weather delays etc....in that event what can I do as a backup plan in case the full loan is needed to be repaid? ($120k)
I know I might be able to get lender to extend further by paying fees, but not sure what other options I have to mitigate risk.
If we finish project on time, loan will convert to principal and interest.