The Rate Spike That Kills New Home Builds

A one-time close construction loan simplifies the process of building a home by combining construction financing and the permanent mortgage into a single transaction. This integrated approach offers several key advantages over a traditional two-time close process.

• Streamlined Process: Borrowers go through a single application, credit check, and closing before construction begins, which saves time and reduces paperwork.
• Reduced Risk: Your permanent mortgage interest rate is locked in upfront, protecting you from rate increases during the building phase. It also eliminates the risk of failing to qualify for a second loan after the home is completed.
• Cost-Effective: By combining two loans into one, you only pay one set of closing costs, which is generally more economical than paying for two separate loan transactions.
• Structured Payouts: The builder is paid through a managed draw schedule, where funds are released in stages only after specific construction milestones are verified, protecting all parties involved.

Read the full blog article here: https://www.iqratemortgages.com/blog/guide-to-one-time-close-construction-loans-in-texas