Single Close Construction Loans Help Build Your Dream Home
If you are interested in building the home of your dreams, consider a single close construction loan. Also known as a one time close construction loan, this type of financing simplifies the borrowing process for clients constructing a new home. At Preferred Home Lending LLC, we offer conventional, FHA and VA loans as part of one-time construction loans. We can help you get a fair interest rate with terms that suit your lifestyle. If you know you are interested in financing the build of your new home, a one-time construction loan can eliminate a lot of red tape involved in traditional construction financing. Contact Preferred Home Lending LLC in Houston, TX, to schedule a consultation about your financing options.
What’s Unique About a Single Close Construction Loan?
A single close construction loan combines the costs for the construction of a new home with its mortgage. Before construction on your new home begins, we can help secure your interest rate and terms, all consolidated into a single payment. Our mortgage professionals will coordinate with your contractor to ensure the process goes smoothly from construction to move-in.
There are a few specifics to note regarding a single close construction loan:
- You sign a single loan that will convert from a construction loan to a mortgage loan once your home is built.
- The construction period typically can last for up to 12 months.
- The purchase price of your property may be included in your loan or you may use the loan on property you already own.
- We can establish a reserve account to cover unforeseen costs that may arise during your home’s construction.
- We will coordinate with an appraiser and your contractor to determine the future value of your home.
- It is important that you work with a skilled contractor who will dependably document plans for construction.
- A great benefit of single close construction loans is that clients pay closing costs only once.
- Payments on your loan are not due until the completion of construction.
Types of Single Close Construction Loans
We work with conventional, VA and FHA loans as part of single close construction loans. Most of these loans feature 30-year terms.
A conventional single close loan may require a larger down payment and have a higher interest rate than a standard mortgage. Because we work with a number of lenders, we are often able to provide better financing options to clients that big banks can.
Like a conventional FHA loan, a single close construction loan is insured through the Federal Housing Administration. An FHA single close construction loan may be used on modular or manufactured homes as well as custom homes in many cases. Low down payment options are available with an FHA-insured loan.
We also offer VA loans, which are insured by the U.S. Department of Veterans Affairs. Like FHA loans, VA loans usually have a minimal down payment and have great interest rates. We are happy to help veterans in Houston and surrounding Texas take advantage of this great program.
Get Started Today
At Preferred Home Lending LLC, we value honesty and open communication with our clients. If you desire to build a home in the Houston, TX, area, contact us. We can help you explore if a single close construction loan or other type of financing is right for you.