Aug 152015

One-Time Close Construction Loan

One-time close construction loan

Instead of the traditional “two loan” process that first requires a construction loan, then, after the home is built, a permanent loan to pay off the construction portion, a One-Time Close Construction Loan  rolls both loans into one!

A One-Time Close Construction Loan allows you to plan your home, build your home, and then begin regular payments with just one loan. No other loan product can make the construction loan process easier.

Here are the main advantages of a One-Time Close Construction Loan:

  • Lock in your best interest rate before the construction begins.
  • Choose the type of permanent loan that’s best for you.
  • Close just one-time on your loan and begin construction.
  • Make no regular payments during construction (monthly interest payment, which is based on the amount of money currently used/drawn to pay for construction, is rolled into the loan).
  • When your home is complete, begin regular monthly principal and interest payments, with no re-financing or additional costs.
  • Optional, very low FHA down payment and lower FICO score requirements to qualify is available.

Contingent upon applicant and loan amount, below are approximate typical closing costs for a One-Time Close Construction Loan:


Origination fee Negotiable
Processing and underwriting fee$1,280
Tax cert & document preparation fee$235
Loan modification and recording fee$102
Lender fee to inspect the home$300
Appraisal fee$450
Credit report$17
Flood certification$18
Lender’s title insuranceLoan amount dependent
Settlement closing fee$300
Tax cert, title search$240
Recording charges mortgage$257
City/county tax/stamps Mortgage$0.35 per $100 of loan amount
State tax/stamps on the mortgage$0.002 X loan amount


Hopefully, the above information has been helpful to you. If you have not already done so, please visit my “can you afford mortgage financing” page  to get you going. You will then have an idea of whether you can afford mortgage financing, and if so, take the next step, which will be to start talking to a mortgage loan officer. Of additional interest is a way that you can enhance your construction loan with a Energy Efficient Mortgage (EEM).

Our services are always FREE to Buyers, and we contribute $500 towards closing costs if you buy through us, as well as $250 toward our Switch to Green, Switch it Forward Fund, to help fight poverty and climate change.

Let us show you how we can be Your Green Dream Team to help you to Live in a High Performance Green Home, that will Save You Money and help you to Pay Your Mortgage Off Years Earlier, while at the same time, live in a home that is Healthier, More Comfortable, Safer and Kinder To The Earth.

Thank you for visiting. Please leave a comment below and then check out the rest of our BLOG. We look forward to making Green Home living your reality.

Marius J Smook – Licensed Real Estate Eco-Broker, LEED AP for HOMES, Home Energy Rater.

Get your checklist now.

 August 15, 2015

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