When you’re building a home, there are hundreds of decisions on everything from cabinet knobs and ceiling fans to paint and siding. Do what you can to simplify the process – starting with financing.
A one-close construction loan provides the funding for construction costs and the mortgage you’ll need to pay for your home. It’s a convenient way to manage both at once.
Building a home is exciting, but it can also be complicated. Handling both the construction financing and long-term mortgage together can minimize decisions and remove stress from the project.
Also known as construction-to-perm loan, a one-close loan allows you to qualify going through the application process one time. And you’ll need just one appraisal.
If you don’t need to wait for a second closing, you may be able to move into your newly constructed home sooner. What’s more, you save money on closing costs.
Simplify new construction financing with:
• One set of closing costs and fees
• Rate lock at any time (vs. risking rate increases during construction)
• Interest-only payments during construction
• Easy process for construction costs
During construction, funds will be paid as needed for the project. When construction is complete, the loan will be updated with a new payment schedule. It takes time to build a home, and interest rates could fluctuate during construction. You choose when to lock in the interest rate, which can reduce that risk.
Your down payment for a one-close construction loan can vary, depending on the type of mortgage you choose, the size of the loan, your credit score, and other factors.
The alternative to a one-close loan is two loans. One would fund construction, and another would be approved when the home is finished to pay off the construction loan and serve as your long-term mortgage.
No matter which type of financing you choose, we will work with you throughout the process to ensure it is a smooth and seamless transaction.