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ONE TIME CLOSE CONSTRUCTION LOAN

BUILDING YOUR FUTURE YOUR WAY

How the Process Works

A one-time close construction loan is a type of financing that streamlines the process of building a new home or property by combining the construction loan and the permanent mortgage into a single transaction. Unlike traditional construction loans that require two separate closings—one for the construction phase and another for the permanent mortgage—a one-time close construction loan simplifies the process by offering a single closing.

Here's a summary of how it works:

  1. Single Closing: With a one-time close construction loan, borrowers only need to go through one closing process, which reduces paperwork, time, and potential fees associated with multiple closings.

  2. Construction Phase: During the construction phase, the borrower typically makes interest-only payments based on the amount drawn from the loan to cover the costs of construction. This phase allows the borrower to access funds as needed to pay contractors and suppliers.

  3. Conversion to Permanent Mortgage: Once construction is complete, the loan automatically converts into a permanent mortgage without the need for a second closing. The borrower transitions from making interest-only payments to regular principal and interest payments.

  4. Locking in Interest Rates: Some one-time close construction loans offer the option to lock in interest rates at the beginning of the process, providing borrowers with greater certainty regarding their long-term mortgage payments.

  5. Flexible Terms: These loans often offer flexible terms to accommodate the unique needs of borrowers and construction projects, including adjustable-rate and fixed-rate options.

  6. Qualification Process: Borrowers typically need to meet certain eligibility criteria, including credit score requirements and income verification, similar to traditional mortgage loans.

In summary, a one-time close construction loan simplifies the financing process for building a new home or property by combining the construction loan and permanent mortgage into a single transaction, saving time, paperwork, and potential fees for borrowers.

Types of One Time Close Construction Loans 

Conventional One Time Close Construction Loan 

Loan type: Conventional

Construction Period Terms: 12 month, 18month and 24 months 

Program Max Loan Limit: $766,550 (subject to approval)

Jumbo One Time Close Construction Loan

Loan type: Jumbo

Construction Period Terms: 12 month, 18month and 24 months 

Program Min Loan Limit: $766,551 (subject to approval)

How the Process Works

A one-time close construction loan is a type of financing that streamlines the process of building a new home or property by combining the construction loan and the permanent mortgage into a single transaction. Unlike traditional construction loans that require two separate closings—one for the construction phase and another for the permanent mortgage—a one-time close construction loan simplifies the process by offering a single closing.

Here's a summary of how it works:

  1. Single Closing: With a one-time close construction loan, borrowers only need to go through one closing process, which reduces paperwork, time, and potential fees associated with multiple closings.

  2. Construction Phase: During the construction phase, the borrower typically makes interest-only payments based on the amount drawn from the loan to cover the costs of construction. This phase allows the borrower to access funds as needed to pay contractors and suppliers.

  3. Conversion to Permanent Mortgage: Once construction is complete, the loan automatically converts into a permanent mortgage without the need for a second closing. The borrower transitions from making interest-only payments to regular principal and interest payments.

  4. Locking in Interest Rates: Some one-time close construction loans offer the option to lock in interest rates at the beginning of the process, providing borrowers with greater certainty regarding their long-term mortgage payments.

  5. Flexible Terms: These loans often offer flexible terms to accommodate the unique needs of borrowers and construction projects, including adjustable-rate and fixed-rate options.

  6. Qualification Process: Borrowers typically need to meet certain eligibility criteria, including credit score requirements and income verification, similar to traditional mortgage loans.

In summary, a one-time close construction loan simplifies the financing process for building a new home or property by combining the construction loan and permanent mortgage into a single transaction, saving time, paperwork, and potential fees for borrowers.

Types of One Time Close Construction Loans 

Conventional One Time Close Construction Loan 

Loan type: Conventional

Construction Period Terms: 12 month, 18month and 24 months 

Program Max Loan Limit: $766,550 (subject to approval)

Jumbo One Time Close Construction Loan

Loan type: Jumbo

Construction Period Terms: 12 month, 18month and 24 months 

Program Min Loan Limit: $766,551 (subject to approval)

Ready to build your dream home?

Our streamlined one-time close construction loan simplifies the financing process, offering both jumbo and conventional options to suit your needs. With the jumbo loan, access higher financing limits and tailored terms for luxury properties, while the conventional option provides accessibility and standardized terms within established loan limits.

Whether you are in New Mexico or in Texas, Don't wait any longer—apply today and take the first step toward bringing your vision to life. New Home construction Loans Albuquerque, New Home construction Loans Santa Fe, New Home construction Loans New Mexico. 

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