When a home is under construction it is imperative to keep the vendors and subcontractors happy, and working! Our draw disbursements are processed and paid within 48 hours to ensure an expedited construction process. Please read the Draw Procedures carefully to make sure you are sending all the necessary backup documentation to expedite speedy payment.
Libra Enterprises, LLC dba Construction Financial Solutions is licensed under the laws of the State of Texas and by state law is subject to regulatory oversight by the Department of Savings and Mortgage Lending. Any consumer wishing to file a complaint against Libra Enterprises, LLC dba Construction Financial Solutions should complete, sign and send a complaint form to the Department of Savings and Mortgage Lending, 2601 North Lamar, Suite 201, Austin, Texas 78075. Complaint forms and instructions may be downloaded and printed from the Department's web site located at sml.texas.gov or obtained from the Department upon request by mail at the address above, by telephone at its toll-free consumer hotline at 1-877-276-5550, by fax at 1-512-475-1360 or by e-mail at firstname.lastname@example.org.
The Department maintains a recovery fund to make payments of certain actual out of pocket damages sustained by borrowers caused by acts of licensed Residential Mortgage Loan Originators. A written application for reimbursement from the recovery fund must be filed with and investigated by The Department prior to the payment of a claim. For more information about the recovery fund, please consult The Department's website at sml.texas.gov.
National Mortgage Licensing System Registry #1771431. Construction Financial Solutions is located at 18568 Forty Six Parkway, Suite 3002, Spring Branch TX 78070.
Lenders are required to provide the "Your Home Loan Toolkit", which has been provided by the Consumer Finance Protection Bureau created to comply with federal law pursuant to 12 U.S.C. 2604, 12 CFR 1024.6, and 12 CFR 1026.19(g). This is for all loan transactions effective 10/3/2015.
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Over the past 25 years CFS has provided the funds necessary to complete construction. If a vendor or subcontractor provides labor and/or materials and does not obtain payment their primary recourse is to put a lien on the homeowner's property which will prohibit the homeowner from refinancing into their long-term mortgage. For this reason our goal is to ensure the loan funds make it into the hands of those who performed the labor and provided the materials on the subject property.
Funds will only be disbursed to the builder or homeowner if we obtain documentation to show the labor and materials have already been paid. For disbursement CFS must receive:
We do not require the builder pay for costs and request reimbursement after-the-fact. CFS can pay the vendors and subcontractors directly! For disbursement CFS must receive:
Upon loan approval and closing the builder may request an up-front deposit not to exceed 5% of the contract price. Any pre-paid deposits provided by the homeowner prior to the loan approval will be applied toward the maximum 5% allowed. No up-front deposits will be provided to subcontractors with exception to cabinetry and counter tops. If a subcontractor requires an up-front deposit the builder or homeowner must take the risk of providing the funds, and upon completion of the work by the subcontractor, may submit the signed Lien Waiver and associated Subcontractor Invoice[s] for reimbursement.
As the lender, CFS is not responsible for code compliance or quality of work. If the home is located outside city limits to where no government agency mandates code-compliance inspections, it is the responsibility of the homeowner to hire an independent licensed real estate inspector to monitor the construction process. Upon receipt of a Draw Request, CFS will send out a 3rd party inspector to verify completion of work in relation to the Draw Request received. Upon receipt of the necessary backup documentation listed above CFS will order the inspection which typically takes 24 hours. Upon receipt of photographs and completion verification CFS will disburse funds within 24 hours. The $100 per inspection fee is automatically added to the payoff for the loan unless otherwise indicated in the Loan Approval Acknowledgments signed upon loan approval.
It is not a CFS policy to require the homeowner to approve of the draw disbursements. It is an independent agreement between the builder and homeowner if the homeowner's signature or email verification is required for each draw request. If CFS receives a request from the homeowner to approve draw requests prior to inspections and disbursements, CFS will honor that request and will provide the homeowner with a list of the items and associated percentage of completion for each budgeted line item.
Draw Disbursements can be made by wire, FedEx or USPS. The builder must indicate on the Draw Request Form how they would like the funds processed and sent. If by wire, the $30 wire fee is automatically added to the payoff for the loan unless otherwise indicated in the Loan Approval Acknowledgments signed upon loan approval.
In accordance with Texas Property Code, CFS will supply the homeowner with copies of all receipts, invoices and release of liens for each draw. If the contract between the homeowner and builder is a Fixed-Price contract, the construction budget will not be shared. If the contract is Cost-Plus, the construction budget will be shared. For more information please review the Builder FAQ.