posted 10 years ago
Well, in general the answer is yes, you will apply for an escrow account to be established from your lender. Take your contractors quotes and designs to your lender. They will establish an account that third parties can draw from. The catch is, you will pay more in the long term. And, you may not have an escrow account for only one project. You must take out a loan for the entire finished price of the homes construction, or otherwise prove sufficient funds. This is for the safety of the banks investment, they do not want to own an unfinished home if you fail to pay your mortgage or compleate the construction.