Home Construction Loan San Antonio TX LenderBy admin | July 31, 2017 | Our Services
Homewood Mortgage LLC is one of the few Home Construction Loan San Antonio TX Lender and in surrounding areas that can still do one-time and two-time Home Construction Loans. “Home Construction Loans are a special type of loans in which the proceeds are used to pay for the construction of the property”. This type of loan can be used to build your home from scratch or complete major remodeling of your home. The terms and interest rate will depend on the scope of your project. In most construction loans, you pay interest only during the time of construction. All Home Construction Loan San Antonio TX will have a limited term during which the project must be completed. At Homewood Mortgage LLC we can help choose between a one-time or two-time close Home Construction Loan San Antonio TX based on your needs and goals.
One Time Close
Home Construction Loan San Antonio TX and the permanent loan terms are determined at the beginning of the process. Calculations of money will be distributed from the loan principal occasionally to the builder until completion of the project. During the Home Construction Loan San Antonio TX stage, the borrower will make monthly interest payments based only on the outstanding balance in any given month. Upon completion of the home, the Home Construction Loan will roll over into the permanent financing, and the borrower will make monthly expenses in accord with the terms of the annotation. The main advantage of a one-time close is the ability to lock in the interest rate and term of the permanent loan far into the future and the elimination of a second underwriting for the permanent loan. The draw back can the limited terms available on the permanent financing as well as the permanent rate offered is typically somewhat higher than the current charges but again this option make sense because the mortgagor is able to eliminate the risk of market movement during the time of Home Construction.
Two Time Close
This option works exactly the same during the Home Construction phase of the project. Once the property is completed, we will appeal the market to search for the best possible rates and terms for the permanent Home Construction Loan. The Home Construction Loan would then be refinanced into a permanent loan with a distinct investor. The biggest advantage of a two-time close is the ability to ensure you receive the most favorable interest rate as well as greater access to longer terms which on the one-time close are typically limited. The draw back can be considerably higher closing costs due to two loan closings as well as the need to go through two underwriting with two different advisors.
Home Construction Loan San Antonio TX Lender
The main advantage of the Home Construction Loan San Antonio TX Lender is that it allows you to build your own house or alter your home through your builder of choice. In addition, because you only have to make the interest-only monthly payments during the Home Construction phase you can afford to hold on to your current home while your new home is completed.
You should start investigating Home Construction Loan San Antonio TX Lender as soon as you have decided to build your home. Even if you are unsure of the cost of Home Construction, you can meet with one of our professional loan officers at Homewood Mortgage LLC to get the necessary details.
For More Information: Home Construction Loan San Antonio TX!