Frequently Asked Questions
Loan Servicing FAQs
When are my payments due?
Payments are due on the first of every month. There is a ten-day calendar grace period. Payments received prior to the 10th of the month will not incur a late fee. Late fees are 10% of the payment amount.
How are my payments calculated?
Interest payments are calculated daily. The payments due on the first of every month are for the interest accrued from the prior month. For example, a payment due on February 1st is for the interest accrued every day of January.
How are late fees calculated?
Late fees are 10% of the payment amount. If you live in FL, DC, and VA, it’s calculated at 5% of the loan amount.
Where can I make a payment?
Payments can be completed by check, by ACH, or through our mobile application, Toolbox. Please note that we don’t take payments over the phone.
Why does my payment amount keep changing every month?
Your interest payments are made in arrears, meaning that every interest payment amount due is for the daily interest accrued in the prior month.
There can be several reasons for payment amount changes:
- Number of days in the prior month: Some months have 30 versus 31 days.
- Construction Draws: Approving and releasing construction draws will increase the unpaid principal balance of the loan. A higher unpaid principal balance will increase the daily interest accrual amount.
- Loan Maturity Extensions: Loan extension fees not paid upfront will be accrued and added to the principal balance. This will also cause an increase in our daily interest accruals.
Construction Draws FAQ
How can I request an inspection for a construction draw reimbursement?
You can make a request in our Toolbox App or email draws@centerstreetlending.com
What is the best way to contact the Draw Department?
You can email the Draw Department at draws@centerstreetlending.com or give them a call at (949) 2840-2722.
What documentation is required for submitting a draw request?
You will need the following documentation ready ahead of submitting a draw request:
- Draw request form
- Lien release form for a draw over $20,000
- Proof of payment (soft costs only)
- Invoices/change orders for contingency requests
- An itemized breakdown of the request being made
What is considered a soft cost that requires proof of payment?
- Permits
- Architect Fees
- Engineering Fees
- Design Fees
- Survey Fees
What are the steps for the draw request process?
1. A draw inspection is ordered — Once a request for a draw process is received, a draw inspection is ordered, and the inspector will contact the borrower directly to confirm and schedule a mutually convenient time to visit the site.
2. Inspection — Once the inspection is completed, the inspector will send their results to the inspection company, which will review and send a report to CSL.
3. Review & Funding — After the report is received, we will review and provide confirmation of approved funds. Once confirmation to proceed is given, we will release the funds.
Do soft cost draws require an inspection?
No inspection is required for soft costs draws. Only the request form and supporting documentation are required.
Who conducts the inspection, and what does it involve?
The inspection is conducted by an inspector from one of our two chosen third-party inspection companies. (Trinity or CFSI).
The inspector will call to verify the best date and time to schedule after the order is placed. They will visit the project site, verify completed work against the budget, and document progress through photographs. We strongly encourage borrowers to get an updated payoff statement once the interest payment is complete — this will eliminate the late fee and reduce the amount of accrued interest due.
How are funds released after the inspection?
Funds are released based on the verified completed work within the budget. Draw Fees are deducted from the approved amount, and the net amount is sent via wire.
How long does it take to receive funds after submitting a draw request?
The typical turnaround time from the date of request to wire transfer is five to seven business days.
What are the fees associated with the draw?
An inspection fee will be charged for each draw that involves an inspection, ranging from $250 to $350, depending on the project size. Larger projects with multiple units are subject to a higher fee, which will be confirmed at the time of the first inspection.
What happens if my project incurs costs outside of or over the budget?
Costs exceeding the budget or not included in the budget will need to be covered out of pocket.
All loans must be paid current prior to the disbursement of draw funds. Loans are considered past due after the tenth day, inclusive of all active loans.
Can reallocations be made within the approved budget?
Minor reallocations will be considered and reviewed with supporting documentation for all changes being requested. For example, if cabinets came in $10,000 under budget, while windows came in $10,000 over budget, we can reallocate those funds using the supporting invoices (or quotes, bids, or change orders) for those two items.
What is the policy regarding reimbursement for material deposits?
We do not reimburse for deposits or materials until they are on-site and installed.
