I have a construction loan that is still in the construction phase. The customer needs more funds to finish the project than we initially put in the loan. They have already maxed out the construction loan. Is it possible to do a modification to change the loan amount and avoid re-disclosures? If not, what re-disclosures would be required?

Thanks.

This depends on 1) state law; 2) your company policy; and 3) whether it is allowed under the construction documentation. For example, in Texas, the mechanic's lien may or may not allow additional funds. So, without additional information this is a hard question to answer. The common practice is to require the borrower to pay for changes in the construction project in cash. You might be able to finance the additional funds through a second lien?