As a broker or lender, I am sure you hear daily, “what is your rate”. While I do agree that this is a very important question, is it the right “first” question? Please enjoy today’s new video for the new year and learn a best practice for taking your construction business to the next level.
Sometimes we forget that we have the power to bring joy back into our clients life. With single close construction financing, a veteran can build a home for their family including the purchase of land for zero dollars out of pocket. A first time homebuyer can use an FHA loan with 3.5% down or someone looking to build in rural America can finance 100% of the build and land cost. What can single close construction financing do for your homebuilder? It allows your homebuilder to expand their marketing footprint by offering new construction financing for VA, USDA, FHA and conventional (FNMA).
With our single close construction program, up to 10% may be disbursed at the closing table. Think of this 10% disbursement as an advance to get the project started. Going forward, we will then allow for up to five draws.
Whether your loan is a FHA, VA, USDA or a FNMA95 single close construction loan, I am sure your builder is curious regarding the draw schedule. With our single close construction program, up to 10% may be disbursed at the closing table. Think of this 10% disbursement as an advance to get the project started. Going forward, we will then allow for up to five draws. These particular draws will only be disbursed upon receipt of a satisfactory inspection report. In other words, (after the 10% advance at closing) we will only payout for work completed.
Many borrowers are still under the impression that they will have to save thousands of dollars to build their dream home. Once a borrower learns that they can build their dream home with a down payment as little as 3.5% for a FHA loan or zero for a VA loan, the excitement begins! Let’s take it a step further. If a borrower already owns their lot or they are receiving the lot as a gift, the level of excitement is that much more! Lot equity can be used for the borrower’s down payment! With single close construction financing, the possibilities and dreams are limitless!
The single close construction program gives a qualified borrower the opportunity to purchase the land wrapped into the same loan as the construction budget.
Offer your partners the value of safety and certainty.
The 100% VA loan benefit coupled with Manufactured Housing is an amazing opportunity.
One closing is more efficient, cost effective and less risky than a double close.