Connecticut Construction Loan Financing Term Sheet is a document that outlines the terms and conditions of a loan provided by a financial institution specifically for construction or renovation projects in the state of Connecticut. This term sheet serves as a preliminary agreement between the borrower and the lender, detailing the essential aspects of the loan. The following are key components commonly found in a Connecticut Construction Loan Financing Term Sheet: 1. Loan Amount: Specifies the maximum loan amount the lender is willing to provide for the construction project. 2. Interest Rate: States the fixed or variable interest rate that will be applied to the loan throughout the construction period. 3. Loan Term: Defines the duration of the loan, typically ranging from 12 to 24 months, during which the borrower can draw funds as needed. 4. Draw Schedule: Outlines the timeline and process for the borrower to request disbursement of funds at each construction milestone or pre-determined stages. 5. Repayment Terms: Provides details on how the loan will be repaid, including whether it will convert to a permanent mortgage once construction is complete, or if it must be refinanced or paid off separately. 6. Collateral Requirements: Specifies the collateral that will secure the loan, such as the property being built, and any additional collateral the lender may require. 7. Loan-to-Cost Ratio: States the maximum percentage of the total construction costs that the loan will cover, typically ranging from 70% to 90%. 8. Loan Origination Fees: Discloses any upfront costs or fees associated with originating the loan, such as application fees, appraisal fees, or underwriting fees. 9. Prepayment Penalty: Outlines whether there will be a penalty for early repayment of the loan and specifies the details, if applicable. 10. Requirements and Conditions: Outlines the borrower's obligations to provide various documents and information, such as construction plans, permits, financial statements, and insurance. There may be variations of the Connecticut Construction Loan Financing Term Sheet depending on the lender or specific project requirements. These could include options for fixed or floating interest rates, different loan terms, or customized requirements based on the complexity of the construction project. It is crucial for borrowers to review and understand the Connecticut Construction Loan Financing Term Sheet thoroughly before proceeding with the loan application process. Consulting with a knowledgeable construction loan broker or professional is advisable to ensure all terms are clearly understood and to negotiate the best possible terms for the borrower's specific project needs.