What is right-sizing? It’s the idea of moving into a home that is the right size and most suitable for your lifestyle. It can be an ideal way to save money while also finding a space that meets your needs. A One Time Close Construction loan can be a great option to build that right-sized home.
Create the Perfect Space for You
For some, right-sizing means moving from a big home to a smaller one. This can be a wonderful way to save money on mortgage payments, property taxes, utilities, and other costs associated with a large home. It can also free up some of your time and effort that would go into maintaining a large property. For others, right-sizing means moving from a small apartment or condo to a house. This can allow you to have more space to entertain guests, have a backyard, have a home office, or simply have more room to stretch out. It also provides a sense of ownership and stability that often come with a larger home.
Why build with a One Time Close Construction loan?
This unique financing option offers many benefits for folks looking to finance their home construction projects. A First United Bank Mortgage One Time Close construction loan allows borrowers to combine their construction loan and their permanent mortgage into one loan. This eliminates the need to get two separate loans, which can be time-consuming and difficult to manage, and the need to pay two separate closing costs.
One Time Close Construction loans often have more flexible qualification requirements compared to other financing options and lower interest rates than traditional construction loans. Lenders typically approve these construction loans quickly, and the funds are available shortly after approval, making it easier to begin construction promptly.
Isn’t building a home more expensive than buying an existing one?
Not necessarily. And the costs can be comparable. Data from the U.S. Census and the National Association of Home Builders (NAHB) shows that in May 2022, the average cost to build a house was $449,000 and the average cost to buy a house was $414,200. Lots of factors, including location, can bring down the 8% difference between the two options. And that’s just a comparison of the upfront costs. There are often additional costs associated with existing homes, namely maintenance and repair of older elements, that don’t exist with newly constructed homes.
What else should I know about One Time Close Construction loans?
They have both 30-year fixed rate and short- and mid-range adjustable rate options for amounts ranging from $200,000 to $1,000,000. The loans are designed for the construction (or remodel) of primary residences and for borrowers with minimum credit scores of 680.*
Do you have a good idea of what your right-sized home should be? You can build it to your exact specifications, and the expert loan originators at The Decker Group can help make that happen. Connect with us online or call us at (972) 591-3097.
*Rates and terms are subject to change. Consult with your First United Mortgage Group representative for the latest information.