Why District Lending?
We do the heavy lifting for you by shopping and comparing the nuisances of over 50 lenders to fine tune your rate and experience. This means you'll get the lowest rate for your one-time close construction loan with an ultra-fast closing in 14 days or less!
What States Are You Licensed In?
We deliver mortgages in 20 states, including:
⭐Arizona
⭐California
⭐Colorado
⭐Florida
⭐Georgia
⭐Idaho
⭐Indiana
⭐Louisiana
⭐Maryland
⭐Michigan
⭐Minnesota
⭐New Jersey
⭐Ohio
⭐Oklahoma
⭐Oregon
⭐Pennsylvania
⭐South Carolina
⭐Tennessee
⭐Texas
⭐Washington
What is One-Time Close Construction Loan?
A one time construction loan, also known as a construction-to-permanent loan or a single close construction loan, combines the financing for the construction of a home and the permanent mortgage into a single loan. This means you only have to go through the loan application and closing process once, saving time and money.
How Does a One Time Close Construction Loan Work?
There’s generally a 3-phased approach to securing a one time close loan:
⭐#1. Application and Approval: You apply for the loan and go through the approval process. The lender evaluates your creditworthiness, income, and the construction plans.
⭐#2. Construction Phase: During this phase, the loan acts like a line of credit. You draw funds in stages, known as “draws,” to pay for construction expenses. Interest is typically charged only on the funds drawn.
⭐#3. Conversion to Permanent Mortgage: Once the construction is complete, the loan converts into a permanent mortgage with a fixed or adjustable interest rate. You start making regular mortgage payments based on the terms of the permanent loan.
What are the Basic Eligibility Requirements?
⭐ Conventional or VA loan: A construction loan is normally structured as a conventional loan or a VA loan.
⭐ A strong credit score: Typically, lenders require a credit score of 620 or higher to qualify for a one-time construction loan.
A down payment: You’ll need to make a down payment of at least 5% of the total project cost. This is to ensure that you have some skin in the game and to reduce the lender’s risk.
⭐ Detailed construction plans: You’ll need to provide detailed plans for your new home, including blueprints, materials lists, and a timeline for construction.
⭐ A qualified builder or contractor: Lenders will require you to work with a qualified builder or contractor who has a proven track record of completing similar projects.
Why Our Customers Love One-Time Close Construction Loans
⭐ Streamlined Process: A one-time close construction loan simplifies the financing process by combining the construction loan and permanent mortgage into a single loan, reducing the need for multiple closings and separate sets of paperwork.
⭐ Cost Savings: Borrowers can save on closing costs and fees since there is only one closing, as opposed to paying for two separate closings with traditional construction-to-permanent financing.
⭐ Interest Rate Protection: This type of loan locks in the interest rate from the beginning, protecting borrowers from potential rate increases during the construction period.
⭐ Convenience and Predictability: A single approval process for both construction and permanent financing offers greater convenience and predictability, making it easier for borrowers to manage their finances and project timelines.
What It Takes to Secure a One-Time Close Construction Loan
Credit Score
A strong credit score: Typically, lenders require a credit score of 620 or higher to qualify for a one-time construction loan.
Down Payment
You’ll need to make a down payment of at least 5% of the total project cost. This is to ensure that you have some skin in the game and to reduce the lender’s risk.
Construction Plans
You’ll need to provide detailed plans for your new home, including blueprints, materials lists, and a timeline for construction.
Qualified Builder
Lenders will require you to work with a qualified builder or contractor who has a proven track record of completing similar projects.
Know exactly what to expect from your loan
- No documents required.
- No commitment.
- No fine print.