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Virginia individuals looking to build a home need reliable financing options that are realistic and affordable. Building a new home is not an inexpensive venture, and financing it can be stressful. With a Virginia Single Close Construction Loan, borrowers can borrow the funds to both build and finance a home in a bundled, efficient manner.
Also known as One Time Close Construction Loans, these loans are specially designed to streamline the loan process when building a home from the ground up. These loans can eliminate the usual stresses found in the traditional loan process. As an expert in Virginia Single Close Construction Loans, GO Mortgage is here to help you understand exactly what this loan option is, how it can benefit you as a borrower, and where to find the most efficient, affordable loan options.
Traditionally, when someone is building a home, they must apply for two loans - one to finance the build of the home, and another for permanent financing once the home is complete. Taking out one loan is confusing as is. When there’s another loan in the mix, things can get complex.
With a Single Close Construction Loan, the construction loan and the permanent loan are combined into one loan. This means that once the new home's construction is complete, the loan will automatically roll into a long-term mortgage. These loans are a life-saver for anyone building a home as they can remove the complicated process of two closings, multiple applications, and skyrocketing interest rates.
Oregon borrowers can benefit from an array of advantages the Single Close Construction Loan holds. A few popular benefits our clients can experience are:
With two loans, there will be two closes. Multiple closings can be expensive and time-consuming. The average cost of closing is 3%-5%, meaning two closings can be extremely expensive.
With a One Time Close Construction Loan, a borrower only needs to close on one loan since construction and permanent financing are combined, saving them significant time and money."
Many traditional 30-year mortgage interest rates adjust after years. This increase in rates can come as a surprise to many borrowers and be an unexpected expense. Single Close Construction Loans offer fixed interest rates, so there won’t be any financial surprises ten years down the line.
A significant advantage to One Time Close Construction Loans is reduced risk. When using this form of loan, you will only work with one lender. This means there is only one application process.
If a borrower is taking out two separate loans, they will have to qualify on multiple occasions, and if a financial difficulty comes along, such as a job loss, a borrower may not qualify the second time around. Single Close Construction Loans only require you to qualify once, ensuring that you will be financed from the moment construction begins until you pay off your home.
GO Mortgage is proud to provide the people of Virginia with several loan products to ensure a streamlined home building and financing process. Our dedicated team will guide you through the loan process from builder eligibility to construction to guarantee a stress-free lending journey.
GO Mortgage is a seller and servicer of a number of government-backed Single Close Construction Loans including:
Our team of approved lenders adheres to guidelines that cover set fees, interest rates, and how funds can be used. Get a personalized quote today!