One-Time Close Loans | FHA and VA Construction Loans
VA and FHA One-Time Close Construction Loans

Homebuyers can have a brand new home built specifically for their needs, rather than settling on an older home.

- Build a Home on Your Own Lot -
VA Loan - One-Time Close Construction Loan
FHA Loan - One-Time Close Construction Loan

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!

Apply Now for Your One-Time Close Constuction Loan
"Since your interest rate is locked in prior to your single closing, you don't have the risk of rates rising during the interim construction phase of the loan."

Designing Your Dream Home

Beaver talks about OTC benefitsWe'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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Articles, Updates, and Guidelines
OTC articles
How Government-Backed Construction Loans Differ From Conventional Loans

The banks that operate conventional construction loan programs have a variety of rules and requirements depending on who you use. Still, one thing among all these lenders is common--for conventional loans, it's the rules of the bank that apply in addition to state/federal regulations. These lenders do not have an overseeing federal agency that regulates the specifics of their construction loan programs outside of typical banking law.
 

Build On Your Own Lot Or Renovate?

If you want to build a home from the ground up on your own lot using an FHA One-Time Close construction loan, you need to know some things before you start. According to Census Bureau data, the construction time for a single-family house is approximately seven months. This does not consider delays due to supply chain issues, weather or natural disasters, or cost overruns, but it’s a good benchmark to start with.

Build On Your Own Lot in Texas with an FHA / VA Construction Loan

Texas residents are finding out that they can utilize these low down payment programs in order to build a new home with the same underwriting guidelines and qualifications as if they were purchasing a resale.  Now may be the time to start looking into building a home that suits your exact needs.  Learn more about the One-Time Close construction mortgage. 


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