A "one-time close", also called an "all in one" construction loan, is a fairly simple way to go about building your home. This type of loan offers a single close, and a single rate for both the construction term and the end financing. Typically, these loans allow for a maximum 12 month construction term, and may have penalties for going over. Once the loan is settled construction may begin. You'll be asked to pay either interest on the money that has been disbursed to the builder, or a regular mortgage payment. This varies from lender to lender so be sure and ask what your options are before you get to far along. The funds are released by a draw schedule. A draw schedule calls for certain items to be completed before funds can be released to the builder. Once your rate is decided upon, and your home is completed, your note will automatically convert to a 29 year mortgage. The loan will be 29 years because one year was used during the construction period.
If you are going to build a home in Texas, our One Time Close Loan program will save you money.
It saves closing costs and hassles by combining your lot loan, interim construction financing, and permanent mortgage loan into one convenient, cost saving package.