FREQUENTLY ASKED QUESTIONS

Q. Who is Normandy?
A. Normandy is a Mortgage Banking company. It was established in 1985 and is headquartered in Rochester, New York.The Company specializes in residential construction and permanent fixed rate financing. A full line of competitive residential and commercial mortgage loan products is offered.

Q. What states do you operate it in?
A. Different loan products are available in different states. Please click on the specific loan type (located on the left side of the page) that you are interested in to see what loans are available in your state.

Q.How long does the approval process take?
A. Assuming all the information is received, It is typically a three step process:

1. A Borrower can be pre-qualified within 1 – 3 business days, then we will provide a Pre-Qualification letter.
2. Once pre-qualified, it will typically take between 10 – 21 days to be approved. However, Express Approvals are possible and take 3-5 days.
3. Closing typically can take place within 4-6 days of final approval.

Q. How much can I borrow against the equity in the land I own?
A. Up to 80% of the appraised value, subject to borrower overall qualifications.

Q. How much can I borrow overall on a single family owner-occupied property?
A. Potentially up to 90% of the appraised value, depending on the program and subject to borrower overall qualifications.

Q. Can closing costs be included in my loan?
A. Closing costs can be included in the loan if there is sufficient equity in the property.

Q. Do I get money up front for the construction?
A. All draws are issued based on work completed. However, if the land/lot has equity, we may advance additional cash, up to 80% of the value, at closing to assist you with up front costs.

Q. Can I get a construction loan if I have already started construction?
A. Yes, monies already spent for materials and labor will be considered as equity into the project. We may not require you to provide receipts for materials or labor you have paid for to date. Lien waivers may be required from contractors and suppliers that have already provided labor or materials to construct the home.

Q. How many draws are allowed on a construction loan?
A. Typically the loan is disbursed in a 5-6 draw schedule based on work completed. However, in many cases, Normandy will allow the Borrower to custom tailor the number of draws during the construction period, subject to approval.

Q. How do I request a draw?
A. Borrowers initiate a call to our construction draw department at 800-390-7536 to speak directly with a draw officer. Typically draws will take 5-7 business days. Express turnaround on draws may be possible, but depend on the specific loan.

Q. Do draws on construction loans go directly to the Builder or Homeowner?
A. Typically draws are released directly to the Borrower. The Borrower is responsible for paying the Builder or Sub-Contractor directly. The one exception is when you are building a Modular Home. In this case, the draw for delivery of the modular home is typically paid directly to the modular company.

Q. Do I have to take all of the money in a specific draw if I do not need it?
A. No, you are not required to take any amount of any one specific draw. Partial draws are allowed.

Q. How much will my payments be for the construction loan?
A. Payments are interest only based on funds advanced.

Example: $250,000 approved loan, 6.95% interest rate during construction, $100,000 is advanced on the fifteenth of the month. The next monthly payment (for 15 days) will be for $289.50.

Q. Do I have to make a monthly payment?
A. The Borrower makes a monthly interest payment based on funds advanced. At Borrower's request. Normandy may consider an interest reserve to make monthly payments; or may require one based on overall credit qualifications.

Q. How long will I have to build my home?
A. Typical construction terms range from 6 to 12 months. Longer terms are available, based on the size of the home and whether it is under our self-build program.

Q.What is a One Close mortgage?
A. Both construction and permanent financing is provided in one loan. Once your home is completed, your construction loan will automatically convert to a permanent mortgage. You can avoid a second set of closing costs.

Q. What is the difference between a lot and land loan?
A. A residential lot is a sectioned off parcel of land typically located in an approved subdivision or development with some level of utilities at the site. A land loan is on a piece of undeveloped land in no particular location.

Q. What are the rates?
A. For general rates click on the specific type of loan program. If unavailable or for specific rate scenarios, you can call us at 800-390-7536, click on the "Contact Me" button, or click on the "Pre-Qualify Now" button and complete the form.

Q. How much cash do I need to qualify to buy a lot and build a house?
A. Generally you will need to put down at least 20% of the purchase price of the lot and cover closing costs. Additional amounts required will vary based loan product, overall credit qualifications, type of lot and the home to be built.

Q. Where do I call to get my credit report?
A. You can call anyone of the three major credit bureaus:

Equifax Credit Bureau	(800) 685-1111
Experian Credit Bureau	(888) 397-3742
Trans Union Credit Bureau	(800) 916-8800