Buy land and build with one closing
One-Time Close construction loans
Build on land you’re buying or land you already own, with one application, one appraisal and one set of closing costs.
Two ways to build on your land
Whether the land is part of the deal or already yours, a One-Time Close loan carries you from lot to finished home.
Buying land and building
Buy the land and build together
The land can be purchased at closing with proceeds from the construction loan, so your lot, your build and your permanent mortgage close in one transaction.
Already own land
Put your land equity to work
If you own your land outright, your equity can go toward the 10% down payment. The loan can also pay off an existing land loan and is treated as a refinance. In many cases, land equity reduces or eliminates the down payment.
Why a One-Time Close loan
Most construction loans need two separate closings. This one combines them, saving you time and money and protecting you from rising rates while you build.
Who qualifies
Here’s what you need for our One-Time Close construction loan.
- Minimum credit score of 650
- An approved builder or general contractor who is a member of the Oklahoma Home Builders Association
- The home must be owner occupied
- No mobile, manufactured or modular homes
- Barndominiums are allowed, subject to an acceptable appraisal
Jennifer Buffington
Partner & Senior Loan Officer
“I’m laser-focused on making your construction loan experience easy, seamless, and pain-free.”
405-201-4829Apply for a construction loan
Office: 405-348-9919
How construction financing works
Closing costs, draws, land equity and what happens when the house is finished.
What is a One-Time close construction loan?
With this loan, you receive both an interim construction loan and a 15 or 30-year permanent loan simultaneously. When the house is finished, the loan automatically switches to permanent financing with a free flow down interest rate option. In addition, the program offers 90% LTV up to $726,000.
YOU ONLY NEED TO QUALIFY ONCE- REDUCED CLOSING COSTS
A One-time close construction to perm loan only requires you to go through this process once! That means you can move through the building steps with peace of mind, knowing your permanent financing needs are already in place and will automatically convert to a permanent loan at the end of construction. In addition, a one-time construction loan eliminates the redundancy of a two-time close by having a single closing and a single set of closing costs. Subsequently, you only have to pay the closing costs once and save thousands of dollars!
A one-time close construction loan requires one appraisal before closing the loan. That means no surprises with two home appraisals when the house is completed and only one appraisal fee!
In today’s rising interest rates, you will be able to:
Lock your long-term 15 or 30 years interest rate at closing that will not change, regardless of the market conditions. Knowing that the rate will not increase during construction gives you greater security that your payment won’t be subject to change.
No Money Down with Land Equity
If you own your land outright, you can put the equity towards the down payment requirement of 10%. Or pay off the balance of the land loan with the One-Time Close loan proceeds. As a benefit, the loan will be considered a refinance if you own the property before the application. Therefore, the Loan-to-Value will be calculated from the requested loan as a percentage of the land’s total appraised value plus improvements.
In many cases, the Land Equity will reduce or eliminate the required down payment.
How can a One-Time Close Construction Loan Benefit You?
Most construction loans require two separate closings. But the One-Time Close combines them all, saving you time and money. In addition, you are protected from rising interest rates during the construction phase. As an added benefit, you will not have to re-qualify for the permanent mortgage, which can make many borrowers anxious about their credit scores or income levels changing when the construction ends.
What is the construction term for a one-time construction loan?
The construction portion of the loan can run anywhere from 6 months to 12 months, giving the builder plenty of time to complete the house and sell your existing home.
During that period, you pay monthly interest only – on the amount that the lender has disbursed and based on the stage of construction.
What makes up the Construction Loan Cost?
- Land Value may be purchased at closing with proceeds from the construction loan. However, you may already own the land; in that case, the new loan will pay off your existing construction loan. Or you may own the land free and clear.
- Hard Costs are tangible costs associated with the home’s construction, including materials and labor costs.
- Contingency Reserve covers unforeseen costs or upgrades in the home construction that usually consists of an additional 10% of the construction costs. This is generally recommended on all contracts to cover change orders or upgrades.
How are draws disbursed from my construction loan?
Tell us about the land you want to buy
Share the location, acreage and asking price, and our team will get back to you with your next steps.
- Call405-348-9919
- Visit233 E. 10th Street Plaza, Suite 3, Edmond, OK 73034
- HoursMonday to Friday, 9 am to 5:30 pm
Spurr Mortgage, NMLS #184526
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