Hi! We do lots of construction loans. We do 80% of the appraised value (of the completed property, land + improvements) and we do insist if they don't have the 20% equity in the land already that we advance their funds first. We don't insist they put the money into the savings account, we just have them turn in the paid receipts for what they paid for. Then we cover the rest on draws. Usually we have the title company handle it though, and they keep the records and do the inspections. Does that help?
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