MULTISTATE CONSTRUCTION LOAN AGREEMENT – Single-Family—Fannie Mae HOMESTYLE MODEL DOCUMENT Form 3735 11/01
(page 1 of 16 pages)
CONSTRUCTION LOAN AGREEMENT
THIS IS A MODEL DOCUMENT FOR USE IN HOMESTYLE LOAN TRANSACTIONS. THIS
FORM IS PROVIDED AS AN EXAMPLE AND IS NOT VALID AND ENFORCEABLE IN ALL
JURISDICTIONS. LENDERS SHOULD CONSULT WITH LEGAL COUNSEL TO ENSURE
THAT ALL FORMS USED TO ORIGINATE LOANS ARE APPROPRIATE, AND THAT ALL
LEGAL INSTRUMENTS ARE COMPLETED CORRECTLY AND IN COMPLIANCE WITH
THIS CONSTRUCTION LOAN AGREEMENT (“Loan Agreement”) dated ______________, _____,
is made by and between: ________________________________________________________________
(“Borrower”, “I”, “me” or “my”), and _____________________________________________________,
a ______________________________________ having a principal place of business at
1. ABOUT THIS LOAN AGREEMENT
1.1. Certain Terms of This Loan Agreement. The terms of this Loan Agreement preceded
by a “
” are part of this Loan Agreement only if the box is checked.
1.2. Lender’s Loan to Me. I have signed a Promissory Note payable to Lender (“Note”).
The Note is for the loan by Lender to me in the principal amount of
$_________________ (“Loan”). The purpose of the Loan is:
to purchase the real property described in Exhibit “A” to this Loan Agreement
to pay in full any outstanding liens on the Property;
to pay for labor and materials to construct certain improvements (“Improvements”) on
the Property (“Work”).
“Property” includes the Improvements. The Work is described in the Schedule of
Advances attached as Exhibit “B” to this Loan Agreement. I also have executed a
Mortgage, Open-end Mortgage, Deed of Trust, Credit Line Deed of Trust or Trust
Indenture (“Security Instrument”) granting Lender a
first second priority lien on the
Property. In this Loan Agreement, “Loan Documents” means the Note, the Security
Instrument, and this Loan Agreement. All terms defined in the Note and the Security
Instrument shall have the same meaning in this Loan Agreement.
2. MY AGREEMENTS
2.1. The Work.
2.1.1. My Contractor. I will enter into a written agreement (“Construction Contract”)
with offices at _____________________________________________________
(“Contractor”) for all the Work. The Construction Contract will state the total
amount that I will pay Contractor for the Work (“Contract Price”), and will
include (i) the blueprints, shop drawings, plans and specifications for the Work
(“Plans”); (ii) a written itemization of the Work and the Contract Price
(“Construction Budget”); and (iii) an itemized description of each segment of the