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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February 20, 2025Imagine you’re building a house. Traditionally, you'd get one loan for the construction, then another to buy the finished house. An One-Time Close construction loan (also known as an OTC mortgage) simplifies this. It's a single loan that covers both the construction and the final mortgage. You close just once, hence the name. Government programs like FHA, VA, and USDA offer these options to qualified applicants.
January 23, 2025Saving for a down payment is a big challenge in building a home. It may seem daunting until you learn about the factors affecting how long it takes to save and the strategies you should consider to reach your goal faster. In addition, there is the need to save for closing costs, and it becomes clear that a detailed plan may be needed to get you into your new dream home. How long will you save the money for your home loan costs, including downpayment? Much depends on your personal circumstances.
January 16, 2025Ever dream of building your own home, customized to your exact tastes and needs? Navigating the world of construction loans can be daunting at first. Some people find themselves juggling a short-term loan for the building phase and scrambling to secure a separate mortgage once the house is complete. But there is a more straightforward way: the single-close construction loan.
