One Time Close Mortgage Lender Colorado
One-Time Close Construction Loan In Colorado
What is a Construction Loan?
A construction loan is a short-term financing option used to cover the expenses of building a house or similar real estate project from beginning to end. It is often a high-interest loan for construction costs such as land, contractors, building materials, and permits. Construction loans are typically for a year and are repaid once completed.
A conventional mortgage loan, on the other hand, is a long-term financing option used to purchase an already-built property. Mortgages offer lower interest rates than construction loans and are paid in full. Payments are typically made up of principal and interest.
The payment structure distinguishes construction loans from traditional mortgage loans. Construction loans are frequently provided to contractors in installments once key construction milestones are achieved. Mortgage loans are made in one single amount to cover the entire cost of the property. Construction loans typically feature interest-only payments, whereas mortgage payments typically include both principal and interest.
One-Time vs. Two-Time Close
One-time close construction loans and two-time close construction loans are two distinct kinds of construction loans that differ primarily in terms of the number of closings and their overall structure.
A one-time close construction loan, also known as a single-close construction loan or an all-in-one construction loan, consolidates the construction loan and permanent mortgage into a single loan. This means that only one closing process is required, encompassing the construction phase and the long-term mortgage. This option simplifies the financing process because applicants only need to pay one set of closing costs and lock in the interest rate for both the construction loan and the permanent mortgage simultaneously.
A two-time close construction loan, or a construction-to-permanent loan, requires two separate closings. The first closing will cover the home’s costs. When the construction is finished, the construction loan is refinanced into a permanent mortgage loan at the second closing. This requires consumers to re-qualify for the permanent mortgage, which may result in a lower interest rate.
Benefits of a One-Time Close Construction Loan
A one-time close construction loan has various advantages over a two-time close construction loan, including the following:
Simplified Financing Process
By combining the construction loan and the permanent mortgage into a single loan, borrowers only have to go through one closing process.
- Reduced Closing Costs
Because there is just one closing, borrowers are only responsible for one set of closing costs. On the other hand, a two-time close construction loan necessitates two distinct closings, each with its own set of closing charges, which can add to the overall cost.
- Locked-in Interest Rates
Borrowers who use a one-time close construction loan lock in interest rates for both the construction loan and the permanent mortgage simultaneously. If interest rates are predicted to climb throughout the construction period, this can be helpful because it protects against potential rate rises.
- Single Qualification Process
Because borrowers qualify for both the construction loan and the permanent mortgage at the onset, the chance of not being able to secure the permanent mortgage once construction is completed is reduced. On the other hand, a two-time close construction loan forces borrowers to re-qualify for the permanent mortgage, which may result in a different interest rate or even loan denial if the borrower’s financial status has changed.
- Streamlined Communications
Because a one-time close construction loan involves a single lender for both the construction and permanent mortgage periods, communication and coordination between the borrower, lender, and builder can be simplified.
Apply for a One-Time Close Construction Loan in Colorado
Numerous considerations must be made before the construction of a new residence. With a One-Time Close Construction Loan, Capital Home Mortgage is available to facilitate this process. We provide a seamless process from the groundbreaking to the move-in. Our Loan Officers will collaborate with you and your home builder to ensure everything runs smoothly.
To speak with one of our Construction Loan Specialists, please call (303) 226-1177.
Colorado One-Time Close Construction Loan
A construction loan is often a short-term loan that provides funding to cover the cost of constructing or renovating a property.
Construction loans typically offer higher interest rates than longer-term mortgage loans used to purchase a property. The money borrowed through a construction loan is often provided in a series of advances as the construction continues.
How Does A Construction Loan Work?
Construction loans are obtained by builders or homebuyers who custom-build homes. These are short-term loans, typically lasting only one year. When the house is finished, the borrower can refinance the construction loan into a permanent mortgage or receive a new loan to pay off the construction loan. While the project is still in progress, the borrower may only be obliged to make interest payments. Certain construction loans may require the balance to be paid in full by the end of the project.
If a borrower takes out a construction loan to build a home, the lender may pay the funds directly to the contractor instead of the borrower. The payments may be made in installments as the project advances through its development phases. In addition to financing the construction of new residences, construction loans can be used to fund rehabilitation and restoration projects.
One-Time Close vs. Two-Time Close Construction Loan
A one-time close construction loan and a regular two-time close construction loan have different terms and payment schedules.
- A one-time close construction loan combines the construction loan and the permanent mortgage into a single loan that is closed before the start of construction. A single-close construction loan is another name for this sort of financing. A one-time close construction loan allows the borrower to acquire permanent loan approval and close both the interim and permanent loan transactions simultaneously. The loan terms, such as the length of the construction phase, the period of the permanent loan, and payments for both, are set for the interim loan, but the permanent loan amount is not set because the project still needs to be finished.
- A conventional two-time close construction loan, on the other hand, is a loan that separates the construction loan and the permanent mortgage into two independent loans with separate closing costs. The construction loan is used to finance the house’s costs, and the permanent mortgage is used to repay the construction loan once the house is finished. Each loan’s terms and rates may vary, and the borrower may need to re-qualify for the permanent mortgage at the end of the building phase.
Advantages of a One-Time Close Construction Loan
A one-time close construction loan has several advantages. Here are some of the benefits of a one-time close construction loan:
Less Fees
Unlike traditional construction loans, which require two closings, one for the construction and one for the permanent mortgage, a one-time close construction loan simply requires one closing. Borrowers can save money on additional closing fees as a result.
Convenience
Borrowers who wish to save the inconvenience and expense of obtaining two separate loans might choose a one-time closing construction loan. Combining the loans also simplifies the application and underwriting process.
Time Saving
Borrowers can save substantial time with a one-time close construction loan since they do not need to submit the required paperwork twice or wait for the lender to review them again.
Qualification
The qualification process for a one-time close construction loan is necessary only before the construction period. It can be advantageous for borrowers because they do not have to re-qualify for the permanent mortgage at the end of the building phase.
Pre-Approval
Borrowers can obtain pre-approved for the construction and permanent mortgage loans at the start of the process with a one-time close construction loan. This means that even if their credit situation changes after the loan is finalized, their house loan will still be approved.
Apply For A One-Time Close Construction Loan
Building an entirely new house is a major undertaking. Capital Home Mortgage Colorado can assist with a One-Time Close Construction Loan to expedite this process. Our Loan Professionals will work with you and your home builder to ensure everything goes smoothly.
Call (303) 226-1177 to speak with one of our Construction Loan Experts.
One-Time Close Construction Loan Alaska
A one-time close construction loan is a type of mortgage that enables the borrower to obtain both construction and long-term finance at the same time. With this financing option, the borrower receives authorization for the permanent loan prior to the start of construction, and the interim and permanent loan transactions are combined into a single transaction. This loan is usually applied for to fund the building of a primary residence, such as a site-built single-family home, a newly built prefabricated home, or a modular home.
Features of a Construction Loan with a One-Time Close
The interest rate and closing date for the One-Time Close Construction Loan are fixed. Because they only have to pay for one closing and may be able to lock in their permanent interest rate, borrowers may find this sort of loan to be a more inexpensive option. A One-Time Close Construction Loan requires a number of steps to be taken, such as the lender’s approval of the loan, builder registration, the delivery of necessary paperwork, and the creation of plans and specifications.
It’s important to keep in mind that a USDA Single Close Construction Loan, sometimes referred to as a rural development loan, is accessible in some rural and suburban areas and provides a 30-year fixed-rate mortgage loan with no down payment necessary.
Benefits of Construction Loans with One-Time Close
A one-time close construction loan combines the permanent mortgage and construction loans for a new house into a single loan. The following are some benefits of a one-time close construction loan:
Only one application is required, saving the borrower time and effort from having to submit two separate applications.
By doing away with the need for two separate closings, the borrower saves thousands of dollars in closing expenses.
Since only one appraisal is required for the loan, a single appraisal valuation removes the risk of appraisal surprises.
Minimum down payment: Just 3.5% is required as a minimum down payment (up to the FHA county lending limit).
The One-Time Close Construction Loan uses a single set of closing paperwork, streamlining and speeding up the procedure.
Affordability: The transaction is more fair because the borrower just needs to pay for one closing and can lock in the ongoing interest rate.
Funding simplicity: The One-Time Close Construction Loan makes it easier to finance a new home.
Apply for a construction loan with a one-time close.
Building a new house is a big effort with a lot of things to think about. Capital Home Mortgage may help by offering a One-Time Close Construction Loan to streamline this procedure. We offer a seamless procedure from construction to move-in. To make sure everything goes smoothly, our Loan Officers will work with you and your house builder.
To speak with one of our Construction Loan Specialists, call (907) 531-5028.
Why Colorado HomeBuyers are Choosing Capital Home Mortgage
Close On Time
Complete Control from Application to Funding
Low Rates & Low Fees
Direct Lender with Competitive Rates & Low Fees
Exceptional Service
7 Day a Week Support Application to Final Mortgage Payment
Colorado Mortgage Rates
Have you ever wondered why interests rates are what they are and what determines the final rate? Why borrowers receive different interest rates? Or why rates go up and down? Interest Rates are calculated using several factors.
- Demand for mortgage Securities
- Property securing the mortgage
- occupancy of the property
- Loan to value of the property
- Borrower’s credit worthiness
Colorado One Time Close Construction Home Loans
Want to Build? But unsure of what the future looks like? Remove the risk with a One Time Close Construction Loan. Call today to see how a OTC loan works.
- Primary Residence Only
- Close Once
- Lock Rate at Contract
- Traditional Final Mortgage
Colorado Mortgage Programs
Colorado Home Purchase
Thinking of Buying a Colorado Home?
Looking to Purchase a Home? We have the loan program for you… Call today to speak with a loan officer to discuss your personal mortgage options.
- Primary, Secondary, Investment
- FHA, VA, USDA, Native American
- Conventional, Jumbo, Non QM
- Reverse, Renovation, Manufactured
Colorado renovation home loans
Looking to Rehab a Colorado Home?
Want the Charm of an Older Neighborhood? But want a new place or a fresh look? Why not look at a renovation loan? Purchase the Perfect Home and make it your own. Call today.
- Remodel, Renovate or Repairs
- FHA 203K Streamline or full
- fannie mae homestyle reno
- freddie mac home choice reno
Colorado FHA Home Loans
Great for 1st Time Colorado Homebuyers
FHA Home Loans are great for first time home buyers, buyers with less than perfect credit, or buyers needing less out of pocket. Call today to get started.
- Smaller Down Payment
- Flexible Underwriting
- Higher Debt to Income Ratios
- Lower Credit Scores OK
Colorado VA Home Loans
100% Financing for Colorado Veterans
Proudly Serving Active Duty servicemen and women, as well as, retired and disabled veterans. Call today to speak with a VA loan officer.
- Simply Qualifying for Veterans
- No Down Payments Requirements
- Lower Credit Scores Accepted
- Manual Underwriting Allowed
Colorado Conventional Home Loans
Flexibility for Colorado Homebuyers
Conventional Home Loans are the best option for flexibility of property types and for mortgage loan terms. Call today to get speak to a Loan Officer.
- Primary, 2nd Home, Investment
- Great Rates & Low Fees
- Single Family and Multi-Family
- Renovation Loan Programs
Colorado Jumbo Home Loans
Colorado Non Conforming Loans
Jumbo Home Loans also called Non Conforming Home Loans are great options for buyers needing financing outside of agency limits. Call today to speak to a loan officer.
- Primary Residence and 2nd Homes
- Higher Loan Amounts – 3 Million
- Great Interest Rates
- Investor Specific Guidelines
Colorado USDA Home Loans
100% Rural Colorado Home Loans
USDA Loans are a great option for families wanting to live outside of the city. Call today to speak with a loan officer to discuss your personal loan options.
- Rural Properties Only
- Primary Residence Only
- Geographic Restrictions
- Income REstrictions
Colorado Native American Loans
Colorado HUD 184 Home Loans
HUD 184 Home Loans are solely for Native American and offer a variety of benefits. Call today to speak with a loan officer to find out more.
- Primary Residence Only
- Manual Underwriting for All Loans
- No Credit Score Requirements
- Tribal Grants Allowed
Colorado Manufactured Home Loans
Great Alternative Colorado Housing
Colorado reverse mortgages
Your Colorado Home at Work
Reverse Mortgage Loans offer seniors options to use their home’s equity for cash or to eliminate payments. Call today to get speak to a Reverse Loan Officer.
- primary residence only
- simple qualifying – equity based
- credit scores not applicable
- Minimum age 62
Colorado Non QM Home Loans
Making Colorado Mortgages Possible
Looking for Non Traditional Home Mortgage Loan? Contact a Loan Officer Today to discuss the alternative mortgage options currently available.
- Purchase, Rate and Term & Cash-out
- Primary, Secondary and Investment
- Full Doc & Bank Statements Programs
- Corporations OK
Colorado One Time Close mortgages
Build Your Colorado Dream Home
Want to Build? But unsure of what the future looks like? Remove the risk with a One Time Close Construction Loan. Call today to see how a OTC loan works.
- Primary Residence Only
- Close Once
- Lock Rate at Contract
- Traditional Final Mortgage
Colorado Refinance Mortgage Loans
Colorado Rate & Term Refinance
Refinancing can be a hard decision and the payback can sometimes be confusing. Call today and let our Loan Officers walk you through the process.
- Reduce Mortgage Term
- Lower Monthly Payments
- Appraisal Waivers
- Streamline Options Available
Colorado Cash-out Home mortgages
Colorado Equity Mortgage Loans
Cash-Out Mortgage Loans make use of the equity in your home by allowing you to refinance the current mortgage and access this equity to use as you see fit.
- Debt Consolidation
- Investment Opportunities
- Home Improvement
- Vacation or Education
