What it is
A sources & uses table lists every dollar going into a project (uses: land, hard costs, soft costs, contingency, interest reserve, fees) and where every dollar comes from (sources: senior debt, mezzanine or preferred equity, sponsor equity, investor equity).
Why lenders ask for it first
It's the fastest way for a lender to see your total capitalization and confirm the deal actually balances — sources must equal uses, dollar for dollar.
Common uses line items
A well-built uses list is specific enough to price but simple enough to read in thirty seconds.
- Land or acquisition cost
- Hard costs (site work, vertical construction)
- Soft costs (design, engineering, permits, insurance)
- Contingency (typically 5–10% of hard costs)
- Interest reserve and loan fees
Common mistakes
The most frequent errors are omitting the interest reserve, understating contingency, and forgetting closing costs on both the acquisition and the loan.
Keep it current
Update sources & uses whenever costs change during underwriting — a stale table is one of the fastest ways to lose a lender's confidence mid-process.