One-close construction loans are a great option for those looking to build a new home or renovate their existing property. These loans allow borrowers to finance both the purchase of the land and the construction costs in a single loan, which can save time and money compared to traditional two-close loans.
One of the biggest advantages of one-close construction loans is that they simplify the lending process. With a traditional two-close loan, borrowers must apply for and obtain separate loans for the land purchase and construction costs. This can result in two sets of fees, two sets of closing costs, and two sets of paperwork to manage. By contrast, one-close construction loans combine these costs into a single loan, which can simplify the process and save borrowers time and money.
Another advantage of one-close construction loans is that they offer greater flexibility in terms of financing. With a traditional loan, borrowers may only be able to finance a percentage of the total cost of construction. This means that they may need to come up with additional funds out-of-pocket in order to cover the full cost of the project. With a one-close construction loan, borrowers can often finance up to 95-100% of the total cost of construction, which can be a huge advantage for those who don't have large amounts of cash on hand.
In addition to simplifying the lending process and providing greater financing flexibility, one-close construction loans can also save borrowers money in the long run. By financing the land purchase and construction costs in a single loan, borrowers can often secure a lower interest rate compared to taking out separate loans. Additionally, because the loan is secured by the property, borrowers may be able to deduct the interest on their taxes, which can result in further savings.
Overall, one-close construction loans can be a great option for those looking to build or renovate a property. By simplifying the lending process, providing greater financing flexibility, and potentially saving borrowers money in the long run, these loans can help borrowers achieve their home construction goals without breaking the bank. As with any financial decision, it's important to carefully consider the options available and work with a trusted lender to find the best loan for your needs and budget.
IMPORTANT: This informational is educational in nature only. Loan product availability and qualification requirements are constantly changing. If you'd like to learn more about a product, please contact on our our highly qualified loan officers.
Comentarios