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Construction Loan Agreement
Free construction loan agreement template — financing disbursed in stages as construction milestones are completed.
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This free construction loan agreement covers 1. Purpose, 2. Disbursement Schedule, 3. Inspections, 4. Interest, 5. Conversion to Permanent Financing with 11 clearly marked [placeholder] fields to fill in — built for landlords, tenants, and small property owners documenting a lease or tenancy change clearly, without guessing at the right structure. Copy it into your own word processor, fill in the placeholders, and review it — or adapt it — before use. It's part of docstoc's free document template library, alongside business, legal, real estate, finance, and HR templates. Every template here is free to copy with no signup required, and each one carries a plain disclaimer: this is a starting point for informational purposes, not a substitute for advice from a licensed professional in your jurisdiction.
Construction Loan Agreement
Lender: [Name] Borrower: [Name] Property: [Address/Legal Description] Date: [Date] Total Loan Amount: [Amount]
1. Purpose
This loan finances construction of [Description of project] on the Property.
2. Disbursement Schedule
Funds are disbursed in draws as construction milestones are completed and verified:
| Draw # | Milestone | Amount |
|---|---|---|
| 1 | [e.g. Foundation complete] | [Amount] |
| 2 | [e.g. Framing complete] | [Amount] |
| 3 | [e.g. Final completion] | [Amount] |
3. Inspections
Before each draw, [Lender/Lender's inspector] will verify the milestone is complete.
4. Interest
Interest accrues only on funds actually disbursed, at [Rate]% per year, during the construction period.
5. Conversion to Permanent Financing
[If applicable: describe how/when this converts to a standard mortgage upon completion.]
6. Default
[Describe what constitutes default — e.g. construction significantly behind schedule, budget overrun beyond an agreed threshold, failure to maintain insurance.]
7. Governing Law
This Agreement is governed by the laws of [State].
Lender: ______________________ Date: ____________ Borrower: ______________________ Date: ____________
*This document is provided for informational and educational purposes only and does not constitute legal advice. Construction loans are technically and legally complex (lien priority, inspection standards, draw disputes) — use a licensed attorney and a qualified lender rather than a DIY agreement for an actual project.*
Edit directly in the box above. Download PDF anytime — the docstoc.io footer is always included and cannot be removed.
What's included
- Edit online — click the document, fill in placeholders, download a PDF
- 7 standard sections: 1. Purpose, 2. Disbursement Schedule, 3. Inspections, 4. Interest, 5. Conversion to Permanent Financing, 6. Default, …
- 11 clearly marked [placeholder] fields for quick personalizing
- Free to use — no account or signup required
- Fully editable — adjust any clause to match your actual situation
- Includes a signature block, ready to print or sign digitally
- Fixed docstoc.io footer on every PDF (not removable)
Who this template is for
Freelancers & solo founders
Handling routine business paperwork without commissioning custom legal drafting for every document.
Small businesses
Standardizing recurring documents — leases, agreements, notices — across a growing operation.
Anyone reviewing before signing
Using a clear starting structure to understand what a document should cover, even if a lawyer finalizes it.
Independent landlords
Managing a rental directly, without a property management company's paperwork.
FAQ
Is this construction loan agreement template really free?
Yes — this Construction Loan Agreement template on docstoc is free to view, edit online, and download as a PDF with no account or signup required.
What does this construction loan agreement cover?
This real estate template includes 1. Purpose, 2. Disbursement Schedule, 3. Inspections, 4. Interest. Fill in the [bracketed] placeholders, edit any clause online, then download a PDF — the docstoc.io footer stays on every export.
Is this legal advice?
No. Landlord-tenant law is one of the most locally-specific areas of law in the US — notice periods, required disclosures, and even what a lease is allowed to say vary by state and often by city. Check your local requirements (or a real estate attorney) before using this for an actual lease or notice.
Can I edit the wording?
Yes — edit directly on the page, adjust any section or clause, and re-fill the 11 placeholder fields to match your situation before downloading a PDF. It's a starting structure, not a rigid script.
Where can I find more free templates like this?
Browse more free real estate and related document templates in the docstoc library at /document-templates/.
More free document templates
- Residential Lease Agreement
- Notice to Vacate / Lease Termination Letter
- Rental Application
- Deed of Trust
- Rent Receipt
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Templates are drafted for general use, not a substitute for legal advice — check the note on each page for specifics.
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