Thinking about building your next home? At Citywide Home Loans, we have financing options designed with you in mind! Here are two of the most popular types of construction loans:
One-time close construction loan. Also called an ‘all in one’ construction loan, this is one of the simplest ways to finance a new home. With this option, you have one loan for both the time period the home is being constructed and after it is completed. Your loan closes only one time and you pay only one set of closing costs. Even better, this Federal Housing Administration-insured loan has a downpayment of as little as 3.5 percent!
The one-time close option is best suited to situations in which you are fairly certain your home will be completed and ready for you to close in about four months. There is a 130-day completion requirement with this type of loan.
Two-time close construction loan. If you have a longer construction timetable and/or need more flexibility, you may want to consider the two-time close option. Construction terms of up to 12 months are available with this type of loan, and when you get closer to the completion of your home, you can lock in a rate on permanent financing for up to 360 days. You’ll have one closing at the start of construction and a second closing to refinance your construction loan into a permanent mortgage once your home is completed. This loan has a downpayment of as little as 5 percent.
Which loan is right for you? It all depends on your individual circumstances, including the length of time it takes to complete your home. We’re happy to go over both types of loans with you and answer any questions you may have about the home building process. My team and I strive to offer the best service and the quickest closings around.
Click here to Get started today!
Click here to Get started today!
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