Use of Construction Loan Funds Question

[bigman023]

Im going through the construction-perm loan process.  I have no actual experience with this product, and there is very little information about them on the web.

In an effort to not look like such a novice in my dealings with the lender and builder, Im trying to find out if there any restrictions on what, or how, the funds from the construction loan can be used.

There are somethings I want to do with my build that my builder may not offer. For example, the lot is a lakefront lot and I would like to have a deck/pier built. The builder does not offer this service.  Am I allowed to find a contractor that does and use the funds from my construction loan to pay him? Or would it have to somehow go through the builder.

Thanks

[aspen12777]

I would ask your General Contractor to Sub the work out to someone that can do it. As long as its on the contract for the house and all the numbers line up on the apprisal I really don't see any issue.

[ezdriver]

Did you hire a builder to design and build a house on land that you own? If yes, whatever you wish to have in your build would be on the construction plans and budget that the lender has approved. If an item is not already included in the approved plans and budget, you can't add items without the lender's approval. All general contractors or builder's can build whatever you want through the subcontracting process.