One-Close Construction Loans
Our streamlined loans include construction financing and a fixed or adjustable rate mortgage with just one application and one set of closing costs.
Our one-close construction loan
Building a new home takes careful planning and countless decisions, but the reward is a home that suits you perfectly. With our one-close construction loan, you can lock in your interest rate as you finalize the details and keep costs down during the construction phase with interest-only payments. As a top national lender specializing in construction loans, we can help you select a one-close construction loan that matches your style, just like your future home.
One-Close Conforming Loan1, 2
Build your dream home and make interest-only payments during construction.
One-Close Jumbo Fixed Loan3, 4
Choose a jumbo loan for building a luxury home or living in a high-cost area.
Compare one-close construction loans
One-Close Conforming Loan |
One-Close Jumbo Fixed Loan |
One-Close ARM |
|
|---|---|---|---|
|
Maximum loan amount |
(or high county loan limit) |
$3.5 million on primary residence |
$4 million on primary residence |
|
One set of closing costs and fees for both loans |
Yes |
Yes |
Yes |
|
Interest-only payments during construction phase |
Yes |
Yes |
Yes |
|
Construction term |
9 or 12 months |
12 months |
12, 18, or 24 months |
|
Lock in interest rate at no cost |
Yes |
Yes |
Yes |
|
Financing for second home |
Yes |
Yes |
Yes |
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Programs for qualified borrowers. All borrowers are subject to credit approval, underwriting approval and product requirements, including: loan to value, credit score limits and other lender terms and conditions. Fees and charges may vary by state and are subject to change without notice. Some restrictions may apply. Not a commitment to lend.
1Construction to permanent financing for primary residence and second homes. Conforming one-close 9- or 12-month construction term program allowing for payment of interest-only during construction. Note to be modified upon completion of improvements to a fully amortized principal and interest payment. Soft costs (architectural, engineering and permit fees) may be financed, closing costs may not. Full third party builder contracts only. Not available in U.S. Virgin Islands.
2Borrower must have an escrow waiver to be eligible for payments of interest-only during construction. Borrower must have put down a minimum of 30% and have a sufficient credit score to avoid requalification at completion of construction. A loan-to-value ratio above 80% may result in a need for mortgage insurance. If mortgage insurance is required, the amount of your payment will increase.
3Construction-to-permanent financing for primary residence and second homes. If escrows are required, monthly payment for taxes and insurance will be due. When construction completes, Note will be modified to collect a fully amortized payment for principal and interest. Construction term is based on time to complete in builder contract or project size if completion time is not specified. Project size is based on the amount of soft costs (such as architectural, engineering and permit fees) and hard costs to complete construction. Land value or closing costs are not included. Subordinate financing not allowed. Full third-party builder contracts required. Important information will be provided to you in the disclosures you receive after we have received your application and the loan documents. Not available in Puerto Rico or the U.S. Virgin Islands. During construction phase, interest-only payment based on amount drawn will be due.
4Construction term up to 12 months is available based on builder contract or project size of $1.5M or less.
5Construction term is based on builder contract or project size. With an adjustable-rate mortgage (ARM), your loan will have an initial fixed-rate period. After the fixed-rate period, your interest rate will adjust up or down according to market rates at the time of the reset. Your payment amount will vary based on any adjustment in the interest rate after the fixed-rate period, and your monthly payment may increase. Your variable rate can adjust bi-annually, or every 6 months, for the remaining life of the loan.
Considerations:
Important information will be provided to you in the disclosures you receive after we have received your application and the loan documents you are provided at loan closing. Interest on the portion of your loan balance that is greater than the fair market value of the dwelling is not tax deductible for federal income tax purposes. Please consult your tax advisor regarding the deductibility of interest.