Where will we show payments to construction subcontractors on the Closing Disclosure (CD)? What if there aren’t enough lines?
That depends on the form used by the lender. When construction is financed, there often is no seller. That opens up the possibility that the lender will require the use of the CD form H-25(J) which can be used when there is no seller. On that form, page three has a Payoffs and Payments table where these payments can be itemized. If the number exceeds 15, the final line can be used in connection with an addendum which would include additional payments.
Since the lender may not necessarily use the alternative form, the payments can be disclosed on the standard form H-25(A) in Section K. Due from Borrower at Closing as Adjustments. Since there are so few lines, the bottom line can contain the total of all additional payments disclosed on an addendum.
That depends on the form used by the lender. When construction is financed, there often is no seller. That opens up the possibility that the lender will require the use of the CD form H-25(J) which can be used when there is no seller. On that form, page three has a Payoffs and Payments table where these payments can be itemized. If the number exceeds 15, the final line can be used in connection with an addendum which would include additional payments.
Since the lender may not necessarily use the alternative form, the payments can be disclosed on the standard form H-25(A) in Section K. Due from Borrower at Closing as Adjustments. Since there are so few lines, the bottom line can contain the total of all additional payments disclosed on an addendum.
12/18/2015