One-Time Close Construction Loan
Building a custom home takes hundreds of decisions, but paying for it is easy with a one-close construction loan. Instead of getting separate loans for building and for the end loan, you can get one convenient loan to cover both. There’s just one application and one closing, saving you time and money. And now, this all-in-one loan includes higher limits, so you may be able to dream even bigger. This One-Time Close (OTC) loan program is available for conforming and high-balance loan amounts.
Top features of this loan program include the ability to lock in your rate at loan approval or anytime thereafter, plus the convenience of a single closing with one set of closing costs and fees. Another aspect of this program that helps homeowners and builders is that there is an interest-only payment feature to use during the construction phase.
If you own the land already and have a mortgage on the lot, the OTC loan can be paid off with the financing for the build. If you want to buy the land and finance the build simultaneously, that is another available option, even if the seller of the land is not the builder. The OTC loan will pay off the seller at time of closing and will finance the building of the home.
The Program Features:
Purchase or refinance
Flexible property options: Primary (up to 95% Loan-to-Value), Second Homes (Up to 90% Loan-to-Value)
FICO requirement: Minimum 620 credit score
Loan amounts: Conforming and High Balance options available
Fixed-rate loan: Enjoy stability with a locked-in interest rate
Term: Available terms of 360/180/240
Eligible property types: 1-Unit Site-Built Homes, Modular Homes
Why choose a One-Time Close Construction Loan?
Lock in your rate at loan approval: No need to worry about fluctuating rates
Easy construction draw process: Funds are released as needed
One set of closing costs & fees: Save money with a single closing
Interest-only payments during construction: Lower monthly payments while building
Up to 9-month draw term: Flexible time frame for project completion
General contractor
A General Contractor will be required for all construction loans. The Contractor must not be related to the borrower. All contracts must be fully executed and be arm’s length. The General Contractor must be approved by Mortgage Equity Partners.
The contract must include the scope of work, plans and specifications, disbursement schedule, and all estimates for construction costs.
The borrower cannot be the General Contractor or be employed by General Contractor.
Contact a knowledgeable loan officer to discuss your options and secure your financing!
Vacant Land Loan
Vacant Land Loans share many similarities with mortgages. Both are forms of financing used to obtain property; however, unlike a traditional mortgage, there is no home to use as collateral. Many homebuyers and investors consider Vacant Land Loans if they have the expertise building homes from scratch.
While building a home from scratch can be expensive, many homeowners have benefited from starting their project with a land loan. The most apparent benefit is building your home from scratch with your exact specifications. An advantage to this option is the ability to have additional time to find a builder that is right for you. Land loans are a strategic option for home buyers looking to secure a property in a desired location with the potential for increased property value and future development opportunities.
Contact a qualified loan officer to learn more about our vacant land loan program!
