Understanding Your One-Time Close Mortgage Payment
Once those steps are all finished and the One-Time Close mortgage has closed, your first monthly mortgage payment will soon be on its way. If you have never owned a home before, you may wonder what that single-close mortgage payment will consist of.
Your One-Time Close mortgage payment does not simply include a portion of your principal balance, plus interest.
Your mortgage payment will likely include escrow, any required insurance, and if you are part of a homeowner’s association you will have to budget those fees into your monthly mortgage expenses, too.
Your mortgage statement will include some specific information worth paying attention to. It doesn’t happen all the time, but lenders can and do make mistakes that show up in your monthly mortgage statement. If you see sudden changes in the statement in a given month, contact the lender immediately to learn what happened.
When your first One-Time Close mortgage statement arrives, it should include the following:
- Total mortgage amount
- Amount due for the month and the due date for payment
- The interest rate
- Fees and charges
- Past due payment information where applicable, plus late fees.
It’s true that One-Time Close mortgages are offered as 30-year, fixed-interest rate mortgages, but during the construction phase of the loan, your transaction may feature an adjustable rate.
Talk to your loan officer about this issue and ask how an automatic payment could be set up to accommodate changes in the interest rate or what the best option for paying is during the construction phase.
And when it comes time to decide whether to refinance the construction loan or not, remember to review your loan agreement for early penalty payoff information. You want to know if you must pay a penalty to pay off your conventional loan early through refinancing it.
Want More Information About One-Time Close Loans?
We have done extensive research on the FHA (Federal Housing Administration) and the VA (Department of Veterans Affairs) One-Time Close Construction loan programs.
We have spoken directly to licensed lenders that originate these residential loan types in most states and each company has supplied us with the guidelines for their products. We can connect you with mortgage loan officers who work for lenders that know the product well and have consistently provided quality service.
If you are interested in being contacted by a licensed lender in your area, please send responses to the questions below. All information is treated confidentially.
OneTimeClose.com provides information and connects consumers to qualified One-Time Close lenders to raise awareness about this loan product and to help consumers receive higher-quality service.
We are not paid for endorsing or recommending the lenders or loan originators and do not otherwise benefit from doing so. Consumers should shop for mortgage services and compare their options before agreeing to proceed.
Please note that investor guidelines for the FHA and VA One-Time Close Construction Program only allow for single-family dwellings (1 unit) – and NOT for multi-family units (no duplexes, triplexes or fourplexes).
In addition, the following homes/building styles are not allowed under these programs: Kit Homes, Barndominiums, Log Cabin Homes, Shipping Container Homes, Stilt Homes, Solar (only) or Wind Powered (only) Homes.
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1. Send your first and last name, e-mail address, and contact telephone number.
2. Tell us the city and state of the proposed property.
3. Tell us your and/or the Co-borrower’s credit profile: Excellent – (680+), Good - (640-679), Fair – (620-639), or Poor- (Below 620). 620 is the minimum qualifying credit score for this product.
4. Are you or your spouse (Co-borrower) eligible veterans? If either of you is an eligible veteran, down payments as low as $0 may be available up to the maximum amount your debt-to-income ratio per VA will allow – there are no maximum loan amounts as per VA guidelines. Most lenders will go up to $1,500,000 and review higher loan amounts on a case-by-case basis. If not, the FHA down payment is 3.5% up to the maximum FHA lending limit for your county.
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September 13, 2024Do you want to build a home using an FHA or VA One-Time Close loan? If you do not currently own land or you need to keep the land you already own for another purpose, there are several considerations when buying undeveloped land you want to use to build your dream home on. Building on a new plot of land can provide some borrowers with additional customization and personalization options. It may offer greater control over the design and layout of your dream home.
September 6, 2024One-Time Close Mortgages can be an appealing option for those who want to build their dream home instead of buying someone else’s house.
Unlike traditional construction loans that involve multiple closings and complex financing stages, a One-Time Close Mortgage simplifies the process, potentially saving borrowers time and money. A One-Time Close mortgage features financing for the construction phase plus the permanent mortgage, presented as a single loan.
August 30, 2024Construction loans differ significantly from existing construction mortgages. The unique nature of these loans includes some potential challenges borrowers must be prepared to handle. What choices do you need to make about construction loans during the planning stages? What about after the construction begins?
