One-Time Close New Construction Program
- One-Time approval
- 5% down payment
- Financed construction build
- Build more unique homes
- Interest-only payments
- Only pay closing costs once
- Secure today’s rates and float down if the market approves
- 700 minimum credit score required
- Eliminates concern of projects falling apart
If you are a new home buyer or new home builder, our one-time close new construction program may be exactly what you need. Buyers only need 5% down payment and close upfront before the home is built. Builders begin the home construction and are paid through a series of draws as the house is completed. This program secures the new home purchase and financing upfront, so nobody has to worry about things changing or anything falling apart along the way. Now, with our new one-time close construction build, we give you and your builder the freedom to build your dream home with a streamlined process that makes it easy for everyone.
A One-Time Close New Construction loan is a single-closing construction loan. The construction portion is short-term financing that is modified into permanent financing upon completion of the project. Funds are accessed through draws and there will be an initial draw at closing for proceeds to the contractor to begin the construction project.
The new one-time close construction program allows you to close only once offering a more streamlined, cost-effective, and easier solution for your new construction home build. With only 5% downpayment required, interest-only payments during the building process, and only one approval, it allows you and your builder to start the project much sooner. In addition, once your home is complete you can secure a lower interest rate if the market changes or stay with your initial interest rate no matter how the market moves.
Builders don’t have to pay for the construction upfront, and then sell the home to you. They can create your dream home and get a loan before construction even begins. Once the loan is closed, the cash is ready to be used for labor and materials. Helping save time and money by only having to close once and covering only one set of closing costs!
Other lenders require intense documentation, have high-interest rates, and have large down payments. JZ Mortgage helps reduce the headaches, keeps the project moving, creates transparency and peace of mind for all parties involved, and offers the same great service on these loans, as we always do!
Questions and Answers:
Q: What is a single closing?
A: A single closing construction loan is the combination of financing of the construction and the permanent mortgage. There is a single closing transaction that occurs prior to construction beginning.
Closing costs/fees that the borrower is responsible for are collected at closing. Funds are accessed through draws and there will be an initial draw at closing for proceeds to the contractor to begin the construction project.
Q: What is a One-Time Close New Construction Purchase Loan?
A: The loan purpose is a purchase when the borrower is not the current owner of the lot on which the home will be built. The borrower is using the loan funds to purchase both the lot and to fund the construction of the property. The loan amount includes the sum of the sales price of the lot and the cost to construct the property minus the down payment.
Q: What is a One-Time Close New Construction Refinance Loan?
A: The loan purpose is a refinance when the borrower already owns the lot in which the home will be built on. The borrower is using the loan funds to pay off any existing liens on the lot and to finance the construction of the home. The loan amount includes the sum of any existing financing from the purchase of the lot and the cost to construct the home.
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