Their reasoning was that their risk models and draw schedules are totally different for dirt work versus going vertical, and they didn’t want any gray areas.
That’s been my experience too—banks just don’t want to blur those lines. I get why, but man, the extra admin is a pain. Curious if anyone’s actually had a lender let them roll horizontal and vertical together recently? Or is that just a unicorn these days? I’ve only seen it work on tiny infill stuff, and even then, it felt like pulling teeth.
I’ve actually seen a couple of regional lenders willing to combine horizontal and vertical, but only if you’ve got a long-standing relationship and a rock-solid GC. Even then, the underwriting hoops are wild.
That lines up with what I’ve run into—anything bigger, and they split it every time. But I wouldn’t call it a total unicorn... just rare and usually not worth the hassle unless you’re desperate to save time.“I’ve only seen it work on tiny infill stuff, and even then, it felt like pulling teeth.”
Yeah, that’s been my experience too. The combined loan sounds great on paper, but the hoops you jump through just to get both sides under one roof? Usually not worth it unless you’ve got a unicorn lender and a GC who’s practically family. For most folks, splitting them is just less headache—even if it drags things out. Sometimes saving time just isn’t worth the ulcers.
- Totally get where you’re coming from.
- I looked into the combined loan route, but the paperwork alone made my head spin.
- Splitting them felt safer, even if it meant more waiting around.
- One thing I noticed: lenders kept changing their requirements mid-process... super frustrating.
- At the end of the day, less stress is worth a little extra time, at least for me.
- You’re not alone—this stuff is way more complicated than it looks on paper.
You nailed it—this process is way more convoluted than most people expect. I’ve been through the vertical/horizontal split a few times now, and every single lender seems to have their own “interpretation” of the rules. It’s almost like they’re making it up as they go, especially when you get into 2026’s new compliance stuff. I remember thinking a combined loan would be more efficient, but then my inbox exploded with addendums and document requests, and I started questioning my life choices.
Honestly, splitting them can be tedious, but it’s predictable. You know what you’re getting into, and if something changes mid-stream, at least you’re only untangling one part of the process instead of the whole thing. The waiting is annoying, but I’d rather deal with that than have a surprise clause pop up two days before closing.
If it helps, I started keeping a running checklist for each lender—nothing fancy, just a Google Sheet with columns for requirements, dates, and who at the bank said what. It saved my sanity more than once when someone tried to say I hadn’t submitted something that I actually had...twice.
One thing I’d add: even though splitting adds time, it can sometimes give you more leverage when negotiating draws or terms on the vertical side. Lenders seem less likely to pull the rug out from under you if they know you’re tracking every step.
Bottom line, your approach makes sense. Sometimes slower is safer, especially with how unpredictable these loan processes have gotten lately.
