One-Time Close Construction Loan Anchorage 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.