One Time Close Construction Loans
One Time Close Construction Loans
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In Williamsport, PA and the Lycoming County region Principle Home Mortgage offers ‘One-Time Close’ construction loans in FHA, USDA, and VA products. ‘One-Time Close’ mortgage loans finance both construction and land, including 1-unit stick-built, doublewide manufactured home, and modular homes. There are many advantages to this mortgage program when considering a new build. Before construction starts, the loan is underwritten and approved. Once this process is complete, closing will be scheduled, and construction may begin. If you’d like more information on building your dream home with a ‘One-Time Close’ mortgage, contact Principle Home Mortgage and read below.
PRODUCT HIGHLIGHTS
- Terms: 15 or 30 Year Fixed; USDA is 30 Year Fixed Only
- Agency: US Department of Agriculture/Rural Housing Authority; Federal Housing Administration; The Department of Veterans Affairs
- Max Loan-to-Value: FHA @ 96.5%; VA or USDA @ 100%
- Max Loan Amount: No set guideline, but based upon debt-to-income (DTI) ratios and other factors. FHA loans will follow lending limit maximums as set by the agency.
- Mortgage Insurance: The loan program will dictate as the guidelines vary from the various agencies.
- Upfront Mortgage Insurance: The loan program will dictate as the guidelines vary from the various agencies.
- Max Income: The loan program will dictate as the guidelines vary from the various agencies.
- DTI Requirement: The loan program will dictate as the guidelines vary from the various agencies.
- Credit Requirement: 620 lowest middle score from Transunion, Equifax, or Experian.
- Down Payment Requirement: As little as 0% for VA and USDA; 3.5% for FHA
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PRODUCT BENEFITS
- All of the agencies back your mortgage: All of the programs available are guaranteed by a federal agency. This guarantee is given to the private lender in the circumstance of foreclosure, which allows the lender to recover most, if not all, of their investment. The lender bears less risk with the guarantee; thus, the borrower can see an increase in the likelihood of obtaining the loan.
- Flexible property types: All the programs allow for 1-unit stick-built, new multi-width manufactured, or modular housing. None of the programs allow for specialty housing, such as log homes or tiny houses.
- No payment is due until construction is complete: While the loan closes before construction begins, there are no mortgage payments due until construction is complete.
- Single construction fee: This fee encompasses any necessary loan modifications, the construction interest, title updates, construction draws, construction underwriting, and construction closing coordination.
- Single closing reduces total costs: Normally with a construction loan, 2 closings are required, with the borrower being re-qualified for the mortgage prior to the second closing. With ‘One-Time Close’ mortgage products, there is no second closing and no re-qualification, thus a cost and time savings to the borrower!
HOW DO I APPLY?
Since ‘One-Time Close’ mortgages follow their agency guidelines, at a minimum you will need to provide 2 years tax returns and W2s, 2 months bank statements, 2 forms of ID, and 30 days of paystubs. If self-employed, these requirements will vary slightly. If applying for a VA loan, a Certificate of Eligibility from the VA will be necessary. If you plan to build in Williamsport, PA and the Lycoming County region, reach out to Principle Home Mortgage at (814) 308-0959 to learn more about your home financing options.
RESOURCES
Check your area’s income restrictions for the USDA product
Find out if your dream location qualifies for the USDA product
Obtain your Certificate of Eligibility for the VA product
Learn more about the VA Home Loan Funding Fee
See what the maximum loan amount is in your area for an FHA product