One-Time Close Loan Benefits
Shopping for the right kind of mortgage is just as important as shopping for the right property. If you’re looking to build your home from scratch, the One-Time Close loan might be your best bet for a number of reasons.
No Additional Closing Costs
Regular construction loans require two separate closings—once for the construction itself, and again when converting into a permanent mortgage. This also means having to pay twice the amount of closing costs on both loans. The One-Time Close Loan eliminates that requirement by bundling the construction and permanent loan into one. One closing means one set of closing costs!
Can't Find a Home You Love?
Many times, buying a move-in ready home just isn't an option. There can be a number of reasons that you've been unable to find or settle on a pre-built house. The ones available in your desired area may be lacking important features, the ones you do like can be over your budget. Maybe the houses that you've seen on the market are all fixer-uppers, but you're not the handiest of people. In such cases, it might make sense to give up on finding the right house and start thinking about building the perfect home!
Designing Your Dream Home
We've all had ideas of what our dream home will look like. With a Single Close loan, those dreams can be made a reality. Instead of having to deal with the previous owner's choice in carpeting until you can afford a renovation, having your new home built from scratch gives you the opportunity to make all those decisions. That much freedom can be overwhelming for some buyers, since there is an influx of ideas and decisions to be made. That's why having a knowledgeable contractor is so important. An experienced builder can help guide you to make the best choices, while still keeping the vision you have for your new home!
Fixed Interest Rates, Locked In
Another thing that doesn't change once construction is complete, is your interest rate. With a Single Close Construction Loan the permanent mortgage is closed before construction begins and your fixed interest rate is locked in, which means it's not subject to increase during the construction phase or at any point. So even if there is a fluctuation in the market during the interim period, buyers will not have to worry about higher monthly payments.
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November 28, 2023FHA loans and VA mortgages are necessary low-to-no down payment options for first-time home buyers, and the programs are also open to other financially qualified applicants. What do you need to know about these loans? The fact that they can be used to build a new house and are not limited to existing construction sales. What’s important to know about these options?
November 16, 2023Are you tempted to build a home from the ground up with an FHA construction loan or a VA One-Time Close mortgage? Building is better for some than buying existing construction but there are some important factors to consider.
November 9, 2023At the time of this writing, the FHA is preparing to release 2024 FHA loan limits for purchase loans, construction loans, and renovation mortgages. If you are building a home and are unsure what loan limits may apply to you, keep reading. We address this issue below. Some might wonder if delaying their loan application until the new year is a good idea, assuming loan limits will be higher.
