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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April 5, 2024Are you a first-time home buyer? Some assume that just one type of home loan is offered and that getting the right home means filling out a generic credit application. But the reality is that depending on whether you want to build or buy, there are specific mortgage programs, procedures, and terms you should know about before you commit.
March 28, 2024Interested in building a dream home with a One-Time Close construction loan? There are important issues to know about these projects, starting with the fact that you typically are not allowed to act as your own builder and must hire contractors to do the work. Some borrowers must get used to thinking about this, but fortunately, some general guidelines can help them through the process.
March 22, 2024Get an FHA / VA backed One-Time close construction to permanent financing loan with a 3.5% down payment for FHA or a $0 down payment for VA. Home inventory levels are at historic lows and now may be a good time to consider building a home on your own lot utilizing this Single Close program.
