Construction Loans

Construction Loans: Underwriting Guidelines

The priority of the lien created by recording is especially important in construction loan situations. If it is necessary to determine that no improvements have commenced in order to insure priority in your jurisdiction, the following requirements must be met:


1.  Owner/Builder Affidavit stating that no work has commenced and no delivery of materials has been made that would create a lien prior to our insured’s.

2.  Satisfactory indemnification to the company for any losses arising from mechanics’ liens. Note: This indemnity must be based on receipt and analysis of current financial statements provided by the owner and contractor, and approval of the financial statements and indemnity agreements by Agents National Title underwriting counsel.  

3.  Completion and submission of ANTIC’s Request for Policy Authorization for Unusual Risks.

4.  Verification/Evidence of non-commencement of construction must be obtained by agent and retained in the agent’s file. Such evidence may consist of photographs that are dated and certified.

5.  Surveyor’s report disclosing that no commencement has begun, nor have materials been delivered to the site.

6.  Recording of the construction loan  mortgage concurrently with the inspection in no.4.


Note: Items 3 and 4 must bear a date which coincides with date of recording. Agents National Title requires that concrete evidence of non-commencement of construction is retained in your file.


Note: Please be aware that in states in which no legal priority can be obtained for construction lenders,additional requirements are necessary and Agents National Title agents must consult the company’s local underwriting counsel for approval.