One-Time Close – Construction to Permanent Loan
This one-time closing loan program is designed to provide financing to build, remodel or improve a primary residence. This means your clients can move through the steps of construction with peace of mind, know their permanent financing needs are already in place. We offer pricing options and flexibility to meet your clients’ needs. This program offers 90% LTV up to 650k as well as in-house process with dedicated One Time Close personnel.
A two-time-close loan is actually two separate loans – a short-term loan for the construction phase and then a separate permanent mortgage loan on the completed project. Essentially, you are refinancing when the home is complete and need to get approved and pay closing costs all over again. During the construction phase, you will pay only interest on the money that has been paid out, so your payments will be small, but increase as more money is disbursed. There may be a maximum duration for the loan, such as 12-month.
A loan is considered a jumbo if it exceeds what is known as the conforming loan limit of $417,000. Qualifying for a jumbo loan usually requires lower debt to income ratios, higher credit scores, larger down payments and higher savings as reserves than
conforming loans. Our Jumbo loans actually have higher lower interest rates than a conventional loan.
Conventional loans are “conforming” if they are generally $417,000 or less for a single-family home. Conforming loan limits can be higher in pricier regions of the country. Most conventional mortgages have either fixed or adjustable interest rates. Typical fixed interest rate loans have a term of 15 or 30 years. A shorter-term loan usually results in a lower interest rate. Adjustable-rate mortgages, or ARMs, fluctuate in relation to the rate of a standard financial index, such as the LIBOR. Monthly payments can go up or down accordingly.
An FHA loan can be your best option for achieving the dream of homeownership. Our FHA program offers low down payment, flexible credit review, fixed or adjustable rate, limited closing costs, no prepayment penalty and streamlined documentation on refinances. Since the 1930, FHA has made home ownership a reality for millions and today it can make the difference for you!
VA loans are guaranteed by the U.S. Department of Veterans Affairs. They are available to active, reservist and veterans of the armed forces. The VA determines eligibility and issues a Certificate of Eligibility. VA loans offer low or no down payment and do not require monthly mortgage insurance. VA loans can be used for purchase or refinance.