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ATTACHMENT 12-C
PROJECT REVIEW
*This optional checklist is not an exhaustive list of requirements for the Single Close
Construction loan product. Details on key points referenced in this checklist, along with full
program details, can be found throughout Chapter 12 of this Handbook.
Documentation of lender requirements
See Paragraphs 12.13 and 12.19-12.27 of Chapter 12 for construction oversight, loan management, and experience requirements.
Documentation of contractor-builder requirements
See Paragraph 12.14 of Chapter 12 for licensure, insurance, and experience requirements.
Budget – Cost Breakdown (See Paragraph 12.15)
x Must match construction contract.
x Must be for eligible loan costs, including change orders.
x Contingency reserves are limited to 10% of new construction costs and 15% when
repairing an existing dwelling with disconnected utilities.
Plans, Drawings and Specifications (See Paragraph 12.9B)
x Must be certified in accordance with Paragraph 12.9B.
x Must fully describe work to be completed.
x Lender may use optional Form RD 1924-25 or an alternative source that documents
the necessary information.
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Construction Contract
x Evidence of all pages of the fixed price contract.
x Must contain a time frame for work to be completed (start/end).
x Change order fees that exceed what is available in the contingency reserve account
will be the responsibility of the borrower.
x Must be signed by the contractor-builder and borrower.
x Amount must match the total amount of budget-cost breakdown.
Rehabilitation and Repair with the Purchase of Existing Dwellings (See Paragraph
12.28)
x Construction period should not exceed ten months from date of closing.
x Appraisal report should support the “As Improved” market value.
x An inspector/consultant is not required for non-structural repairs of $75,000 or less.
x The lender administering the construction phase must meet the experience
requirements in Paragraph 12.13.
x Fees associated with bringing previously unpermitted repairs up to code must be
included in total bid prior to the loan closing.
Loan Closing (See Paragraph 12.20)
x Lender will ensure all security documents are completed at loan closing and may use
industry standard documents, as USDA does not maintain a list of required forms.
x May not exceed 30-year term, including construction period.
x Interest on loan is payable monthly. Lender will determine payor based on how the
loan is structured.
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