Make your dream home come true with our One-Time Close New Construction loan. We’ll work with you, your real estate agent and your builder to get you a great rate and a hassle-free mortgage experience. Plus, one closing means one interest rate (with the option to modify down if the market improves), one down payment, one full credit report to order and just one approval.
- Conventional, high balance and ARMs available
- 700+ FICO
- As little as 5% down
- Interest-only payments until the build is complete
Don’t settle for “almost perfect.” Ask about our One-Time Close New Construction loans today!
Real estate agents, build new relationships with builders/contractors and further expand their portfolio of options for borrowers.
What is a One-Time Close New Construction loan?
A One-Time Close New Construction loan is a single closing construction loan. The construction portion is short-term financing that is modified into permanent financing upon completion of the project. A single closing construction mortgage can be closed as a purchase or a refinance.
What is a single closing?
A single closing construction loan is the combination of financing of the construction and the permanent mortgage. There is a single closing transaction that occurs prior to construction beginning.
Closing costs/fees that the borrower is responsible for are collected at closing. Funds are accessed through draws and there will be an initial draw at closing for proceeds to the contractor to begin the construction project.
What is a One-Time Close New Construction Purchase Loan?
The loan purpose is a purchase when the borrower is not the current owner of the lot on which the home will be built. The borrower is using the loan funds to purchase both the lot and to fund the construction of the property. The loan amount includes the sum of the sales price of the lot and the cost to construct the property minus the down payment.
What is a One-Time Close New Construction Refinance Loan?
The loan purpose is a refinance when the borrower already owns the lot in which the home will be built on. The borrower is using the loan funds to pay off any existing liens on the lot and to finance the construction of the home. The loan amount includes the sum of the any existing financing from purchase of the lot and the cost to construct the home.
Construction Period – time frame between the initial draw at closing to completion of the construction of the property
Initial Draw (Draw at Close) – amount of funds to be disbursed at closing.
On a purchase transaction, funds from initial draw are used to purchase the lot and to pay the contractor to begin the project.
On a refinance transaction, funds may be used to pay off existing financing on the lot and to pay the contractor to begin the project.
Draw Schedule – outline of the increments in which funds will be disbursed to the contractor in accordance with the construction contract.
- Funds are generally released to complete a certain percentage of the project throughout the construction period.
- Before each draw is released, an inspection is done to ensure progress is being made on the construction, a title search is done to ensure there are no outstanding liens and that the correct permits are drawn.
- 10 business day turn time for release of the initial draw once it has been dispersed from UWM at closing.
- Business days are based on regular business hours of 8am EST – 8pm EST Monday-Friday