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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August 16, 2023In our last article, we answered some basic questions about building a home and what it takes to get approved for a One-Time Close construction loan. As we noted the first time around, single-close mortgages are better for some borrowers than others. Unfortunately, some don't realize this until they have submitted a loan application, only to be turned down by the lender.
August 9, 2023If you are interested in building a home, you likely have some basic questions as you start the planning stages of your construction loan. Some single-close mortgages are better for some borrowers than others. Consider the no-down payment VA home loan option, which is offered to those who qualify for the VA mortgage program with uniformed service.
August 2, 2023Who can qualify for a VA or FHA One-Time Close construction loan? These mortgages aren't for everyone, but those who qualify can build a dream home that is far closer to their own vision for the property than purchasing existing construction homes. What do you need to know before applying for a construction loan to build a residence?
