112704 Resource 78777 78860 78860 1136747776315 1136824957303 Controlled Commercial Construction Loan and the Sources and Uses of Funds Statement The Wise Commercial Loan Broker Places It High in the Stacking Order <p>If you apply for a commercial construction loan, one of the first items your commercial construction lender will look for in your package is the <strong><em>Sources and Use of Funds Statement</em></strong>.&nbsp; The Sources and Use of Funds Statement will list on one side&nbsp;where every penny of the construction budget will be used (spent).&nbsp; The other side of the statement will list the source of the funds, be it from the developer's own pocket, from the proceeds of the construction loan, or from any subordinate financing.</p><p>The reason this statement is so important is because it shows exactly how much skin the developer has in the game.&nbsp; Is the developer covering the customary 20% of the total project cost, or is he trying to get the construction lender to cover 97% of the cost or is he (illegally) trying to use purchase deposits of future condo buyers as part of his required equity?</p><p>As a construction lender I spent half my time on projects trying to ferret out how much dough a developer has in the deal.&nbsp; You would be amazed at how much&nbsp;subterfuge developers and mortgage bankers will go through to hide or disguise the developer's lack of equity dollars.</p><p>Therefore bankers and other construction lenders&nbsp;greatly admire the package which displays the Sources and Use of Funds Statement as one of the first documents in the <strong><em>stacking order</em></strong> of the package.&nbsp; The stacking order is merely the order in which documents appear in a loan package.</p><p>You can apply to hundreds of commercial construction lenders and mezzanine lenders in just four minutes using C-Loans.com.</p> 9 application/xml false apartment construction lender commercial construction loan commercial financing commercial loan commercial mortgage commercial real estate loan mezzanine loan C-Loans Commercial Mortgage Lender Databank Apply to Hundreds of Commercial Construction Lenders in Just Four Minutes http://www.c-loans.com/onlineapp Mozilla/5.0 (Windows; U; Windows NT 5.1; en-US; rv:1.7.5) Gecko/20041107 Firefox/1.0 71.50.240.39 71.50.240.39 GBlackburne false true false false true 198508 false false true false false false true 78777 blog blogsite/CLoans/web