One Time Close Construction

One Time Close Construction

Building a home from scratch can be a great opportunity to personalize your new space. But just like buying a house, construction can be an expensive prospect. Luckily, construction loans provide the funds necessary to buy land and pay for the materials and labor that go into building a new house.

What does a construction loan cover?

Every project is different, but in general, a construction loan pays for:

• Land.
• Plans, permits and fees.
• Labor and materials.
• Closing costs.
• Contingency reserves (in case the project costs more than estimated).
• Interest reserves (if you don’t want to make interest payments during building).

There are several types of construction loans to choose from, and the application and approval process is more complex than for a traditional mortgage. We’ll help demystify construction loans by walking you through how they work, available types of financing and what you’ll need to qualify.