We own a lot outside of Houston and have plans to build on it in the very near future. We are shopping construction loans right now and the initial lender that we spoke with only offers a traditional construction loan that we would close on up front and then have to go through a second closing when we secure permanent financing when the home is complete.
I have heard about a single close construction loan that converts to permanent financing at the end. Is there anyone on here that is familiar with this type of construction loan? The lender I spoke with initially said that fewer companies offer this type of loan.
Other than less closing costs would there be an advantage to using a single close? Are there any other differences in down payments needed that I would need to be aware of? We intend to use our lot as our primary source of down payment.
I would love to speak with someone who has experience with this.
Thanks guys. I appreciate your help!
I have heard about a single close construction loan that converts to permanent financing at the end. Is there anyone on here that is familiar with this type of construction loan? The lender I spoke with initially said that fewer companies offer this type of loan.
Other than less closing costs would there be an advantage to using a single close? Are there any other differences in down payments needed that I would need to be aware of? We intend to use our lot as our primary source of down payment.
I would love to speak with someone who has experience with this.
Thanks guys. I appreciate your help!