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Building a home is an expensive process. Not only must an individual or family pay for the construction expenses, but they also must take out a mortgage to pay off the home. This can be a massive financial stress for borrowers, especially when you consider the burden of two separate loans.
With a Single Close Construction Loan, home owners can combine construction loans with a mortgage, eliminating the need for two loans and closing on those two loans. A homeowner can experience the benefits of one permanent loan instead of the short-term benefits of a construction loan.
When a California family or individual is constructing a home, they must take out two loans - a construction loan for the building expenses and a permanent loan for a mortgage. These two loans require two closings and cause stresses for homeowners. Applying for and closing the separate loans is an expensive and time-consuming process.
With a California One Time Close Construction Loan, a construction loan immediately transfers to a permanent loan once the building of the home is complete. With this loan option, there is no need for a borrower to take out two loans. A Single Close Construction Loan automatically rolls over from the construction loan to a long-term permanent loan. This will eliminate the added costs of closing on two loans and provide a homeowner with peace of mind that they have a secure mortgage immediately following construction.
Single Close Construction Loans provide significant convenience for homeowners. From one close to fixed interest rates, here are some benefits a borrower can experience from Single Close Construction Loans in California:
This is the most significant advantage of choosing a One Time Close Construction Loan. A typical loan process requires borrowers to take out a construction loan to finance the building of a home and then another permanent loan to pay off the home. Closing on both these loans is expensive and can cost you 3%-5%. With one loan, you eliminate these high closing costs.
Single Close Construction Loans eliminate risks significantly for borrowers. When taking out multiple loans, a borrower runs the risk of not qualifying for a permanent loan when the time comes. Changes in employment, finances, and other factors can affect a home builder’s ability to borrow. With a One Time Close Construction Loan, a home builder will qualify once initially and not have to qualify again.
A 30-year mortgage often carries variable interest rates that can adjust over time, catching you off guard. Single Close Construction Loans offer fixed interest rates that last throughout both the construction and permanent loan process. These loans eliminate any surprises down the road.
GO Mortgage is your trusted partner for all One Time Close Construction Loans throughout California. Our dedicated team will guide you through the complex Single Close Construction Loan process, helping you understand every aspect of the loan. Our services include builder collaboration, contract services, project review, loan closing, and more.
GO Mortgage is an approved lender, adhering to guidelines including set fees, interest rates, and how funds can be used. We are a proud provider and seller of several government-backed home loan products such as FHA Construction Loans, Fannie Mae Construction Loans, VA One-Time Close Construction Loans, and more.
For a streamlined Single Close Construction Loan in California, get started with the experts at GO Mortgage today!