(The time at which the house is constructed. During construction, money is disbursed to the borrower(s) and builder to fund the building process until completion)
- Log Manufacturer Deposit - Money payable to the log company that is required to get the logs ordered or to get on the manufacturers cut schedule. Any deposit is shown on the disbursement schedule prior to closing.
- General Contractor Deposit Money - Money payable to the builder (General Contractor) before construction has begun. This money is used as start-up money and working capital for the builder. Any deposit of this kind may be available at initial closing. If applicable, this deposit is shown on the disbursement schedule. Not all builders are eligible.
- Reimbursement for Borrower Deposit - Money payable to reimburse the borrower for any monies paid out of pocket prior to the start of construction. Not all borrowers are eligible for reimbursement. Sufficient equity and approval from the construction department is required to obtain reimbursement. Borrowers must provide sufficient proof of deposits paid to log manufacturers and contractors in order for reimbursement. For example, canceled checks and paid invoices.
- Draw Request - Upon completion of the required draw items, either the borrower or builder may order an inspection via email at or by phone at 877-226-5242 to request funds.
- Inspections - A property inspection prior to the release of funds. The original appraiser performs periodic inspections to determine that work is progressing according to the disbursement schedule. When the inspection is received, the lender releases funds based on the inspector's assessment. If the items within the requested draw are not completed, a partial disbursement based on the inspector's recommendation and the approval of the Construction Department may be released.
- Draw Checks - Payment for work completed based on an inspection report. The checks are sent to the borrower(s) and made co-payable to both the borrower(s) and the builder. Our standard policy is to send out these checks via overnight courier. **Please note: The borrower's account must be current in order for the draw check to be disbursed.**
Attention Log or Modular Home Builders: We require funding notification 5 days prior to any log or home delivery.
- Interest Only payments During Construction - During the construction phase, the borrower(s) are required to make interest only payments to American Home Bank based on the monthly outstanding balance of their construction loan. A borrower may elect to participate in American Home Bank's "NO INTEREST DURING CONSTRUCTION" program prior to initial settlement. Sufficient equity is required to set up the no interest account. **Please ask your loan officer for details.
- Lien Search - A title search performed at each draw to insure the lender that no liens have been placed on the property since initial settlement. This step is only required if applicable in the borrower(s) particular state.
- Building Permit - We require a building permit at the time of initial closing. If a permit has not been issued at that time, the borrower(s) or builder are required to submit it to as soon as it becomes available. We will not disburse funds until a building permit is received.
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