Center Street Lending
Frequently Asked Questions
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Construction Draws Process FAQ
• Email: [email protected]
• Toolbox App
• (949) 284-2722
• [email protected]
• Draw Request Form
• Lien Release Form (if the draw is over $20,000)
• Proof of payment (for soft costs only)
• Invoices/Change Orders (for contingency requests)
• Itemized Breakdown of request being made.
• Permits
• Architect Fees
• Engineering Fees
• Design Fees
• Survey Fees
Once a request is received, a draw inspection is ordered. The inspector will contact the borrower directly to confirm and schedule the best day & time to go to the site. Once the inspection is completed, the inspector will send their results to the inspection company.
The inspection company will review and send a report to CSL. Once the report is received, we will review and provide with confirmation of approved funds. Once confirmation to proceed is given, we will release funds.
No inspection is required for soft costs draws. Only the Request form and supporting documentation will be required.
The inspection is conducted by an inspector from the chosen third-party inspection company. (Trinity or CFSI).
The inspector will call to verify the best date and time to schedule after the order is placed. They will visit the project site, verify completed work against the budget and document progress through photographs.
We encourage borrowers to get an updated payoff statement once the interest payment is completed as this will eliminate the late fee and reduce the amount of accrued interest due.
Funds are released based on the verified completed work within the budget. Draw Fees are deducted from the approved amount and the net amount is sent via wire.
The typical turn-around time from the date of request to the date of wire transfer is 5-7 days.
An inspection fee will be charged for each draw that involves an inspection. The inspection fees are generally $250 or $350 dependent on budget/project size. Larger projects with multiple units are subject to a higher fee which will be confirmed at the time of the first inspection.
Costs exceeding the budget or not included in the budget will need to be covered out of pocket.
All Loans must be paid current prior to the disbursement of draw funds. Loans are considered past due after the 10th. This is inclusive of all active loans.
Minor reallocations will be considered and reviewed with supporting documentation for all changes being requested. (Example would be if Cabinets came in $10k under Budget and Windows came in $10k over, we can reallocate those funds with the supporting invoices/quotes/bids/change orders for those two items)
We do not reimburse for deposits or materials until they are onsite and installed.
Loan Servicing FAQ
Payments are due on the first of every month. There is a 10 calendar days grace period.
Payments received prior to the 10th of the month will not incur a late fee. Late fees are 10% of the payment amount.
Interest payments are calculated daily. The payments due on the 1st of every month for the interest accrued the prior month. For example, a payment due on February 1st is for the interest accrued every day of January.
Late fees are 10% of the payment amount except in FL, DC, and VA where it’s calculated at 5% of the loan amount.
We don’t take payments over the phone. Payments can be completed by check, by ACH or through our mobile application Toolbox.
Your interest payments are made in arrears. Every interest payment amount due is for the daily interest accrued the prior month. There are several reasons for payment amount changes.
o Number of days in the prior month: Some months having 30 Vs 31 days will cause your interest payment due to change.
o Construction Draws: Approve and released construction draws will increase the unpaid principal balance of the loan. A higher unpaid principal balance will increase the daily interest accruals amount.
o Loan Maturity Extensions: Loan extension fees not paid upfront will be accrued and added to principal balance. This will also cause an increase on our daily interest accruals.
The accrued interest on a payoff statement is the amount of interest due up until the date of the payoff. This number may vary depending on the day of the month that the payoff is being requested and the “good through date” of the payoff.
In some cases, the accrued interest may be just for the number of days of the current month and in cases where the current interest payment has not yet been made, the payoff may include the prior month interest accrual and the portion of the current month.
There are cases where the loan does not have any late fees due, but the payoff statement shows a late fee. This happens when a payoff is requested with a good through date past the 10th of the month and the payment for that current month is not yet completed.
We encourage borrowers to get an updated payoff statement once the interest payment is completed as this will eliminate the late fee and reduce the amount of accrued interest due.
Loans can be extended in 90-day increments. The Loan Extension & Modification agreement included in your loan documents contains all the information relevant to your extension request.
Every loan must be reviewed for progress, Insurance, taxes and payment history prior to submitting for note holder approval. Loan extensions are not guaranteed and dependent upon the current state of the loan and market conditions. Additionally, in today’s environment loan extensions typically include an interest rate adjustment.
No. Borrowers only pay interest on the loan’s unpaid principal balance. Every construction advance, once approved and released to the borrower, will increase the principal balance and will at that point accrue interest.
Any unused rehab funds are not part of the unpaid principal balance and do not accrue interest.
No. Borrowers only pay interest on the loan’s unpaid principal balance. Every construction draw once approved and released to the borrower will increase the principal balance and will at that point accrue interest.
Any unused rehab funds are not part of the unpaid principal balance and do not accrue interest.
No, your loan is an interest only loan and the payments collected are specifically for the interests accrued. Taxes and insurance are the responsibility of the borrower and must be kept current.
All Loans must be paid current prior to the disbursement of draw funds. Loans are considered past due after the 10th. This is inclusive of all active loans.
Once you submit your draw request and all necessary documentation, we will place an order for an inspection. Once the inspection is completed and we receive the report we will review, validate, and approve a refund based on the budget and completed inspection.
Overall, the draw should be released about 5 business days from your request. This timeline may be affected by geographic location, vendor availability or incomplete submission requests.
Payoffs are typically completed and sent out along with wiring instructions via secured DocuSign the same day as requested.
Some payoffs require a little more research and in those cases the payoffs may take up to 24 hours.
Once a loan is paid off and final accounting is completed. Refund checks will be mailed out within 2 to 3 weeks.
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Construction Draws
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