We are doing a construction to permanent loan. The borrower is borrowing more than they possibly need so that they ensure they have enough construction funds. The loan will be a fixed rate loan. The borrower wants to know if after the 12 months is up and the repayment starts, if they don’t borrow the full amount can the original stated monthly payment be recalculated on the amount they borrow? If so would you have a change of terms agreement showing the lowered monthly payment and have them sign it?
Of course, you may agree to modify the terms of an existing loan. Use of a modification agreement would be appropriate, and generally would not trigger new disclosure requirements. If you decide to modify the existing loan by having the borrower sign a new note, the transaction would be a refinance, which would trigger new disclosures and other requirements.
There are other options. Instead of a construction to permanent loan you could do separate construction and permanent loans. The permanent loan could be done in the correct amount at origination.