Builders are busy – and that’s putting it mildly. The North Texas market saw a 40% surge in new home starts in the first quarter of 2021. With a record 15,063 single-family homes under construction across the region between January and March, builders are working feverishly to meet the exceptional demand.
Though material and labor shortages are pushing out construction times, that’s not deterring prospective homebuyers from waiting for their next home, especially since existing home inventory is near nil. It’s time to get ahead of the construction process and evaluate your construction loan options.
First United Bank Mortgage’s Construction Lending Division offers several new construction loan programs, including:
- Short-term lot loan financing for raw land.
- Interim financing of the construction loan followed by a permanent mortgage.
- One-Time-Close mortgage that combines the interim mortgage with a permanent mortgage.
Our One -Time-Close, or a construction-to-permanent loan, is a good option if you have definite plans in place to build. You can lock in a long-term interest rate at the onset of construction. The lender pays the builder in phases, called ‘draws’, and once construction is completed, the cost of that loan is converted into a permanent mortgage. The benefit of the One Time Close Construction loan is that you only pay closing costs one time.
Construction loans offer some advantages:
- Interest-only during construction
- Flexible terms
The One Time Close is available for construction or remodel of a primary residence, and up to a $1,000,000 loan amount. Loans over $417,000 are available in 3/1 and 5/1 ARMs and a 30-Year Fixed with a balloon payment in 15 years. Want to learn more? Give us a call to speak directly with a mortgage banker: (972) 591-3097.