State Resource Center
Construction Lending Requirements by State
Lien priority, waiver forms, notice of commencement, contractor licensing, preliminary notice, retainage, and more for all 50 states and D.C., each tied to its statute.
State pages
How to read a state page.
The six requirements
One answer each for lien priority, waiver form, notice of commencement, contractor licensing, preliminary notice, and retainage.
The brief
What a construction lender needs to know, in a few paragraphs.
The detail
Priority, retainage, prompt payment, title, waivers, notices, and licensing, each citing its statute.
Download and verify
Download the state's documents where available, and check the review date and statutes at the end.
Example: Texas
The six requirements
- Priority over prior mortgage
- Can relate back
- Statutory waiver form
- Required
- Notice of commencement
- Optional
- Contractor licensing
- No general license
- Preliminary notice
- Required
- Retainage
- 10% (statutory)
Forms
Forms drawn from each state’s statute.
Some states spell out exactly what a form has to say. Where they do, you get it unchanged. Where they don’t, we build the form to meet the rule.
Lien waivers
Conditional and unconditional, progress and final, for every state that prescribes a form.
Notices
Commencement, preliminary, and notice to owner, with the deadline printed on each.
Affidavits and releases
Completion, commencement, and lien release documents by state.
Questions
Frequently asked questions.
How does a lender keep first-lien priority over mechanics liens?
It depends on the state's priority rule. Where liens relate back to the first work on site, record the mortgage before any work or material delivery; other states set priority by recording order. Confirm the controlling rule on the state page.
What's the difference between relation-back and first-to-record priority?
Under first-to-record, priority follows recording order, so a mortgage recorded before a lien is filed generally wins. Under relation-back, the lien's priority dates to the first work or delivery, so a loan recorded after work starts can fall behind. Each state page states which applies.
How much retainage can a lender hold, and when is it released?
It varies by state. Some cap retainage on private work (commonly 5%) and set a release deadline; others leave the amount and timing to the contract; and New Mexico prohibits it on covered projects. Confirm the rule before setting the holdback.
Do a borrower's contractors need a state license?
It varies. Many states require a contractor license and bar an unlicensed contractor from filing or enforcing a lien; others have no statewide general-contractor license and regulate only specialty trades or locally. Each state page lists the requirement.
What should a lender do when a lien is filed mid-project?
Treat it as a stop-funding event: pause draws, verify the claim, and resolve it before releasing more, since paying past a known lien can subordinate the loan or cause double payment. Liens can often be bonded off so title clears and funding resumes.
How do lien waivers protect a lender at each draw?
A lien waiver is signed proof of payment that releases lien rights for that amount. Collecting the right one from every party at each draw builds a clean chain of releases. Some states prescribe a statutory form and a few require notarization; others don't.
Index
Browse all 50 states and the District of Columbia.
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