Construction Home Loans for Indiana





Wherever possible, we have tried to automate our forms so that you can conduct business with us online. That means you'll find pricing information, forms to register and lock a loan, information about residential construction, and forms to become an a customer of Direct Money Lenders Inc.
  1. Broker originates & processes
  2. Direct Money Lenders underwrites and prepares closing
  3. Borrower goes to one settlement
  4. Construction begins after settlement
  5. Two different interest rates: construction rate & end loan rate
  6. Direct Money Lenders administers draws and disburses funds for work completed
  7. Borrower pays interest only, on funds disbursed
  8. When construction is complete, Direct Money Lenders modifies note into a permanent end loan
  9. Borrower begins P&I payments
  • The rate during construction will be locked for twelve months when the loan is registered.
  • The borrower will be billed monthly for the amount disbursed.
  • Fixed or ARM
  • One Time Float Down Program
    • Anytime to Market Rate for 1 Point
  • Floating Interest Rate Program
  • Regular and Extended Rate Locks
    • 60 days
    • 120 days
    • 180 days
    • 270 days

Construction Perm Pricing Changes Effective Tuesday February 22, 2005


To provide you with the most flexible construction permanent lending programs, Direct Money Lendersnow offers a Rate Cap Program and two CTP Choice Programs featuring a low construction rate or reduced cost long lock or rate cap options.

1.) Rate Cap Program:

The Rate Cap Program provides borrowers an end loan option with a maximum interest rate ceiling to protect the borrower in an up trending market while allowing them to lock in to a lower interest rate if market conditions remain below their cap. 

Borrowers can select a cap ranging from 180, 240, 270, 360 or 390 days. The program uses the same interest rate for both the construction rate and the end loan rate. The program uses a 12-month construction term that begins at loan closing and runs independent to the end loan cap term (it is possible for the end loan cap to expire in advance of the construction term).

Fixed Rate Products
Cap Period 180 240 270 360 390
Interest Rate Cap %          (NEW) .375% .500% .750% 1.250% 1.375%
Adjustable Rate Products
Cap Period 180 240 270 360 390
Interest Rate Cap %  (UNCHANGED) .125% .250% .375% .750% 1.000%

Highlights:

  • The borrower’s end loan rate will never exceed the capped rate when modification occurs within the cap period.
  • The capped rate is the construction rate.
  • The capped loan rate will either be the borrowers end loan rate, or if market permits, Direct Money Lenders floats the permanent rate down automatically to .125% over the 60-day rate 10 days prior to modification.
  • The Rate Cap program is available for posted products only. Refer to daily price sheet for eligible programs.
  • Capped rate locks cannot switch out of the program at any time. Once capped, always capped.
  • Due to the re-price feature of the Rate Cap, Secondary Marketing will re-evaluate all loans individually when determining extension and relock costs; market conditions to determine if additional fees are charged.

2.) CTP Choice Construction Rate Programs:

Let the borrower choose! 

Option A = CTP Choice- 5.49% construction interest rate

The construction interest rate and end loan rates are independent of one another. End loans may float (base rate is determined by price established at initial closing for all floating loans) or lock for an extended period at the posted 60-day rate and price, plus the appropriate rate add on as outlined in the following grids:

Fixed Rate Products
Lock Period 180 210 240 270 360 390
Interest Rate % Add On .500% .625% .750% .875% 1.250% n/a
Adjustable Rate Products
Lock Period 180 210 240 270 360 390
Interest Rate % Add On .450% .625% .750% .600% 1.250% n/a
Option B = CTP Choice- 7.49% construction interest rate

Borrowers may elect to lock, float or cap their end loan interest rate based upon pricing at initial construction loan closing. Rate cap is effective for end loan only and not applicable to construction interest rate.

Borrowers who select a floating end loan may at anytime during construction elect to lock or cap their permanent interest rate. Selecting the cap rate after construction closing does not change the construction interest rate and provides the same interest rate protection outlined previously in the Rate Cap Program. The end loan cap rate is determined by using the cap grid, selecting the cap term and adding the corresponding interest rate premium to the current 60-day rate as determined by base price at initial construction closing.

Fixed Rate Products
Lock Period 180 210 240 270 360 390
Interest Rate % Add On .400% .500% .550% .600% .875% n/a
Adjustable Rate Products
Lock Period 180 210 240 270 360 390
Interest Rate % Add On .400% .500% .500% .550% .850% n/a

Effective May 2, 2005
CTP 1st Mortgage Fees:

  • Doc Prep $395.00
  • Processing $450.00
  • Flood Certification Fee $8.00
  • Tax Service Fee $76.00
  • Draw Inspections - $500 up front (we will credit the borrower for any unused $ at modification)
  • All points and closing costs collected at settlement
  • Note: Broker is paid at settlement

CTP Simultaneous 2nd Mortgage Fees (available only in: CT, DE, GA, IN, MA, MD, NE, NH, NJ, OH, PA, TN, VA, VT):

  • Doc Prep $150.00 (Except in PA where it is not permitted)
  • Flood Certification Fee $5.00
  • Tax Certification Fee $35.00

Lot Loan Fees:

  • Doc Prep $395.00
  • Processing Fee $450.00
  • Tax Service Fee $76.00

Note: the above fees are charged where allowed by law.

Full Package (no stacking order or copy package required)

  1. Properly completed Direct Money Lenders registration sheet
  2. 1003
  3. Current pay stub
  4. 2 Years W-2s & verbal verification or employer verification
  5. 2 Years Tax returns if self employed
  6. Verification of deposit or 2 months consecutive bank statements
  7. Credit report
  8. Automated u/w feedback sheet (if available)
  9. Good Faith Estimate
  10. Signed Compliance disclosures
  11. Appraisal
  12. Construction documents
    • Construction contract signed by builder & borrower
    • Construction plans and specs
    • Builder contact info: name, contact, address, and E-mail address
    • Build preferred draw schedule
  13. Verification of any deposit made to builder
  14. Copy of Driver's License

A credit package approval can be submitted without appraisal and construction documents.
  1. Underwriting Turnaround
    • 48 hours
  2. Draw Schedule Preparation
    • 48 hours
  3. Loan Conditions Must Be Cleared 5 Days Prior to Loan Closing Date
  1. Direct Money Lenders Construction Loan Department administers all draws
  2. Builder or borrower orders draw inpections from Direct Money Lenders Construction Loan Department
  3. Direct Money Lenders Construction Loan Department orders inspection from appraiser
  4. Appraiser faxes inspection to Direct Money Lenders Construction Loan Department
  5. Direct Money Lenders overnights a two-party check to borrower or builder
  6. Borrower billed monthly for interest on construction monies disbursed
  7. 2 weeks prior to project completion, borrower contacts and schedules modification with construction loan department. Modification paperwork is forwarded to the borrower for signatures. - Borrowers will owe money at modification for inspection fees, construction interest, prepaid interest on end loan, escrow for taxes and insurance
  1. Program limited to owner-occupied single family residences only
  2. No multi-units or mixed use
  3. Ensure that your appraisers know they will be doing inspections
  4. You can never "modify up" to a higher loan amount during/after construction. Borrowers can reduce their loan amount prior to modification
  5. Your WILL write a check at modification
  6. You can't flip from a fixed to ARM after initial construction settlement
  7. Deposits to builders - must show proof when your loan package is submitted - don't bring it to the table
  8. Call Direct Money Lenders to schedule closings
  9. No subprime program



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