How does Construction Interest work?
What exactly is Advantage Builders responsibility regarding my construction loan interest?
Advantage Builders will pay interest only on your loan for a single family dwelling up to the maximum allowance stated in your contract. The builders responsibility to pay this interest extends no longer than five days past the day the CO is issued on your home. The builder does not pay interest on a duplex. Your bank invoice will often include escrow, extension and/or late charges. Advantage Builders pays the interest only. Advantage Builders does not pay escrow, extension and/or late fee charges. These charges are the responsibility of the customer.
Does my bank send a copy of the invoice directly to Advantage Builders?
In most cases, your bank does NOT send a copy of your construction loan interest to Advantage Builders. It is the customer's responsibility to either fax the invoice, or scan and e-mail the invoice to us. All invoices must include the property address clearly identified or hand written on the statement.
When will Advantage Builders pay my interest?
All interest invoices received by noon (EST) on Wednesday will be included in Friday's pay run. Any invoice received after noon on Wednesday will Fall into the Friday pay run of the following week. ***Please Note: if the property address is not clearly noted on the interest statement, then the bill cannot be paid even if received by noon on Wednesday.What if this schedule means my interest will not be paid before the due date and therefore possibly cause negative effect on my credit rating?
Most banks do have a grace period after the due date. However, if you have any concern about your credit rating, you always have the option of paying the interest yourself and forwarding a copy of the check and a copy of the invoice to Advantage Builders for reimbursement. Your reimbursement will be processed as per the payment schedule described above. Contact Us for reimbursements.
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