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If you’re considering building a new home, but worried about the intimidating expenses and time consumption that comes from taking out multiple loans, GO Mortgage can help. With a Fannie Mae Single Close Construction Loan, there’s no need to take out separate loans for construction and a mortgage.
Here, GO Mortgage will help you understand how this is possible and how you can qualify for a Fannie Mae Single Close Construction Loan.
A Fannie Mae Single Close Construction Loan is a mortgage loan insured by Fannie Mae. This type of loan is suited for newly constructed single-family homes. It combines the purchase of the property or lot with the construction of the house to deliver a myriad of benefits to borrowers.
The main differentiator of this loan, as opposed to traditional mortgages, is that this loan only requires a single closing. Borrowers can also benefit from a low down payment and competitive interest rates.
A Fannie Mae Single Close Construction Loan is a loan that eases the difficult process of financing new home construction. When building a new single-family home, borrowers traditionally have to take out a loan for construction expenses in addition to financing the land. This process requires two separate closings, which will cost the borrower more money.
Fannie Mae Single Close Construction Loans allow the borrower to close both the construction loan and permanent financing at the same time. Once the construction process is completed, the loan will convert into a permanent loan. Fannie Mae allows borrowers to lock in interest rates prior to closing, while also allowing them to adjust to the lowest interest rate available during the construction process when converting to the permanent mortgage.
Overall, this form of loan combines the interim construction loan with the permanent financing. It eliminates the need for separate loans and closings.
A Single Close Construction Loan from Fannie Mae can ease the stress for the borrower significantly.
In order to qualify for a Fannie Mae Single Close Construction Loan, a borrower must meet the following requirements:
A Fannie Mae Single Close Construction Loan can help borrowers everywhere significantly. From saved time to locked interest rates, Single Close Construction Loans simplify the mortgage process immensely for borrowers. Here is what a borrower can benefit from when choosing Fannie Mae Single Close Construction Loans:
A Fannie Mae Single Close Construction Loan is one of the best solutions for builders looking for an affordable way to construct a new home. If this loan is not within financial means for a builder, here are a few alternatives:
These loans are affordable solutions for families looking for alternatives to Single Close Construction Loans. These are just a few alternatives, as there are plenty of loan options available for builders everywhere.
When applying for a Fannie Mae Single Close Construction Loan, there are a number of steps to take in order to apply and eventually qualify for the loan. Below is how any borrower can begin the application process:
GO Mortgage is your partner for all Fannie Mae Single Close Construction Loan solutions. Our team will provide you with guidance to ensure you receive a mortgage solution that saves you time and money. There’s no need to be intimidated by a mortgage ever again with your partners at GO Mortgage. We are licensed in 35 states including a team specifically for Minnesota loans. Reach out to us today to get your Fannie Mae Single Close Construction Loan started!