Local expertise
Building in Michigan: what the national guides skip
We serve builders in all 50 states — but Michigan is home turf. The state's Construction Lien Act shapes every draw on your loan, and knowing how it works is the difference between smooth fundings and stalled ones.
The Construction Lien Act, in plain English
In Michigan, anyone who improves your property — the general contractor, every subcontractor, every material supplier — can place a lien on your home if they aren't paid. The Lien Act's paperwork exists to protect you from paying twice: once to your builder, and again to a sub the builder never paid. Three documents do the heavy lifting:
The sworn statement
A notarized, itemized list from your builder naming every sub and supplier on the job, what each is owed, and for what work. Your lender and title company require one at every draw — it's the master ledger of who could ever claim a lien.
Statutory lien waivers
When a sub or supplier is paid, they sign a waiver — on Michigan's specific statutory forms — giving up lien rights for that payment (partial waivers along the way, full waivers at the end). One sharp edge in the law: for residential projects you generally can't rely on a waiver handed to you by anyone other than the lien claimant themselves without verifying it with them directly. Good title companies do this verification as routine.
Title company draw verification
Before each draw funds, the title company re-searches title to confirm no liens have been recorded, matches the sworn statement against the waivers collected, and issues an endorsement extending the lender's title coverage to the new balance. Only then does money move. It feels bureaucratic; it's the system working.
What this means when you pick a builder
- ▸Ask how they run their lien paperwork. A builder who produces clean sworn statements and collects waivers promptly gets draws funded in days, not weeks. A disorganized one starves their own job of cash.
- ▸Verify their Michigan residential builder's license and insurance — your lender will, and finding a problem early costs nothing.
- ▸Expect the lender's builder-approval packet: license, insurance certificates, references, and often financials. Builders who've done financed construction before have this ready.
Not in Michigan? You're still covered.
Every state has its own lien and draw mechanics, and the loan programs themselves are national. The wizard works for projects in all 50 states, and your roadmap consultation covers the local details for wherever you're breaking ground.