Horizontal & Vertical Development Form

"*" indicates required fields

Property Information

Property Address*

Street Address Address Line 2 City State ZIP Code

Type of Project

Fix & Flip

New Construction

Ownership Status*

Purchase Contract*

Property Status

Date Property Was Originally Purchased

MM slash DD slash YYYY

Mortgage Balance*

Current Mortgage Payment*

YTD Renovations Completed ($)*

Reason for Refinance*

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Property Address (OLD DO NOT USE)

New Loan Requested*

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New Loan Requested (OLD DO NOT USE)

New Improvement Budget*

After Repair/Build New Value

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Future Value (ARV)*

Liquid Assets (Cash, Stocks Bonds including IRA &401K)*

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Net Worth*

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Number of active rentals and/or Fix/Flips (24mo's)*

Number of Construction Properties completed (Last 3 Years)**

Number of Rehab Properties completed (Last 3 Years)**

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$ Value of Investment Properties Sold*

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$ Value of Properties sold*

Combined Purchase Price is required

Borrower Information

Full Name*

Email*

Phone Number*

Est. Fico*

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Expected Rate*

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Expected Fees*

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Expected Closing Date*

Underwriting Questionnaire Checklist for Subdivision Development & Construction Loan

Borrower and Guarantor Qualifications

Similar Projects:

Has the developer (sponsor) successfully completed development projects of similar scope and cost to the proposed subdivision?

Yes

Financial Strength:

Do the borrower and guarantors exhibit strong financial capacity (e.g. high net worth relative to the loan size and good credit history) to support the project?

Yes

Project Scope:

Is the development plan clearly defined, including the total number of lots/units, any phases of development, and the scope of improvements (roads, utilities, amenities)?

Yes

Infrastructure:

Are necessary utilities and infrastructure available or planned for the site (e.g. access to water, sewer, electricity, roads) to support the subdivision?

Yes

Developer Liquidity and Financial Reserves

Detailed Budget:

Is there a comprehensive construction budget covering all hard costs (land improvements, construction materials, labor) and soft costs (engineering, architecture, permits, fees)?

Yes

Permits:

Have all key permits (grading, building, environmental) been obtained or are they scheduled to be obtained prior to starting construction?

Yes

Financial Structure (Cost, Equity, Other Financing, Draws)

Total Cost & Loan Amount:

Are the total project costs (land acquisition, development, construction, interest reserve, contingency, etc.) clearly documented, and is the loan amount in line with these costs?

Yes

Equity Injection:

Is the borrower (and any equity partners) contributing a substantial equity investment up front (e.g. at least ~15–25% of total project cost) into the deal?

Yes

Interest Reserve:

Does the loan include an interest reserve to cover interest payments during the construction period so the borrower doesn’t have to pay out-of-pocket before project revenues begin?

Yes

Construction Budget and Details (Hard/Soft Costs, Contractor, Bonding)

Liquidity Reserves:

Does the developer (and guarantors) have sufficient liquid assets or reserves equal to at least ~7.5% of the project cost (a typical minimum) to handle cost overruns or delays?

Yes

Net Worth:

(If required) Do the developer/sponsor principals have a net worth substantially above the loan amount (e.g. >1x loan size) as an additional financial cushion for the project?

Yes

Exit Strategy and Loan Repayment

Defined Exit:

Is there a clear exit strategy for repaying the loan (Yes/No) – for example, sale of finished lots to builders or end-buyers, or conversion to construction loans for vertical home building?

Yes

Lot Sale Contracts:

If the plan is to sell developed lots, are there any presale agreements, letters of intent, or contracts in place with builders or buyers for a portion of the lots? (Yes/No)

Yes

Vertical Build-Out Plan:

If the developer intends to build homes on the lots (vertical construction) as the next phase, is there a plan or financing in place for that construction or a take-out commitment?

Yes

Release Terms:

Have lot release prices or release provisions been established (if the loan will be paid down partially as lots are sold)? (Yes/No)

Yes

Loan Term Fit:

Is the loan term (including any extensions) sufficient to cover the development period and the time needed to execute the exit strategy? (Yes/No)

Yes

Market Analysis and Risk Factors

Market Feasibility:

Has a market feasibility study or appraisal been conducted, and does it support the project’s viability, including expected lot sale prices and sales velocity? (Yes/No)

Yes

Comparable Sales:

Do recent comparable sales of similar lots or homes in the area support the proposed pricing and absorption assumptions for this project? (Yes/No)

Yes

Demand/Supply:

Is there sufficient demand in the local market (and a limited enough supply/competition) to absorb the new lots or homes as planned? (Yes/No)

Yes

Comments / Questions

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