NEW CONSTRUCTION
Program Highlights
One Closing
Simplify the process and avoid the expenses of two separate applications and closings. One-Time Close Construction loans, also known as Construction-to-Permanent loans, offer the most efficient solution to achieve your objectives.
The Process
FAQ
What is a One-Time-Close Construction loan? A One-Time-Close New Construction loan combines the financing for both the construction and permanent mortgage into one loan. This eliminates the need for two separate closings and allows for a smoother, more cost-effective process.
What is the loan repayment structure? Conventional: During the construction phase, you’ll make interest-only payments based solely on the amount drawn on the loan. Any funds of your own will be used first before the loan is drawn on. Once the construction is complete, the loan converts into a fully amortizing conventional mortgage. VA: The VA One-Time Close loan follows a similar repayment structure to Conventional, but with one key advantage, interest-only payments during construction can be rolled into the total loan amount.
Can I lock my interest rate? Yes, you can lock in your interest rate at the time of closing to protect against increases. Additionally, if rates drop after construction, you have the option to relock at a lower rate.
What is the credit score requirement? Conventional: A minimum FICO credit score of 700 is required to qualify for this loan. This is subject to change. VA: A minimum FICO credit score of 580 is required to qualify for this loan. This is subject to change.
What types of loan terms/options are available? Conventional: You can choose from 15-year and 30-year fixed-rate loans, or 7/6 and 10/6 ARMs for conventional loans, depending on your preference and qualifications. VA: 30 Year Fixed Rate options only.
Do I have to already own the land? No. The loan is designed to finance the land also if needed. The loan can also be used to pay off an existing land loan.
Do I need to sell my current home first? This just depends on whether or not you qualify for the new construction loan while retaining your current home. We will help you determine this during the pre-approval process.
What are the costs associated with this loan? The costs are generally the same as as a normal purchase mortgage with the addition of several fees related to the oversight process throughout the build period. We’ll fully disclose all costs up-front before you decide to move forward, no obligation whatsoever.
How do mortgage brokers differ from banks? The user experience with a Mortgage Broker and bank/retail lender is the same in many ways, you work directly with us and our loan officers, just as you would with the loan officers at a bank/retail lender. The key difference is where your loan is funded and how that impacts your options, rates, and costs. When you work with a bank or direct to consumer retail lender, you’re limited to that institution’s loan products, rates, and guidelines. As a Mortgage Broker, we still handle the entire process, but instead of using a single bank’s products, we access wholesale mortgage lenders that fund the loans. These lenders don’t work directly with consumers, they provide funding through brokers like Murray Mortgage Solutions, allowing for lower rates, reduced fees, and a wider range of loan options. So while the process may feel similar, working with a Mortgage Broker not only provides access to better rates and lower fees but also delivers a more personalized, flexible, and streamlined experience tailored to your needs. Visit our “What is a Mortgage Broker” article to learn more.
