What are the Features and Benefits of a One Time Close Construction Loan?
- 70% LTV with no requalification required post-construction
- 90% LTV option with requalification required post-construction
- Loan amounts up to $484,350, or more in high balance areas
- Rate can be locked at any time during the loan application/process
- *Simple and flexible draw process with no set schedules
- *Pay interest-only payments during construction
- *Consolidate construction and purchase for only one set of closing costs and fees
One-Time Close Construction Loan
A one-time close construction loan combines your construction financing into the same loan with the permanent mortgage financing. You only have a single closing transaction before you can begin construction and only a single set of fees and closing costs are collected. After construction, the loan converts to the permanent phase and traditional payments begin.
Customize Your Home
A perfect California home can come in many forms. But what you find perfect may not be readily available on the market.
This custom loan product gives buyers an opportunity to build and finance their dream home with only one application and one closing process.
Loan Types and Terms
30- year conventional
Eligible properties include:
1-unit site-built homes
Planned Unit Developments (PUDs)
Rural properties 10 acres or less
The Advantage of an Independent Lender
An Independent California Mortgage Lender like Zachery Adam does not work for the banks. They underwrite most of their loans in-house. Independent lenders approve — and pre-approve — mortgages throughout California. Here are the top five reasons to talk to an independent California mortgage lender:
While a bank can offer many financial products for a wide range of customers, independent California mortgage lenders like Zachery only do mortgage loans. Zachery Adam of Go Prime Mortgage has the knowledge and experience to match you with the right mortgage with the best rates and terms for you.
Independent California mortgage lenders have been around for a long time, surviving the crash and thriving in the new market. Go Prime Mortgage was founded in in 2005. It’s a well-established company with the funding to find mortgage loans even for unusual mortgage applications.
Being independent means independent California mortgage lender Zachery Adam can move faster than big banks to approve mortgages and close loans. Go Prime Mortgage can close in less than 30 days. Our goal is to close on time, every time.
Independent California mortgage lenders like Zachery Adam work directly with you throughout the entire approval process. You’ll be in contact with your lender every step of the way making the entire mortgage approval process much more transparent.
When it comes to mortgages, a California mortgage lender can outmaneuver banks because they offer more types of loans, such as first-time VA loans and debt consolidation loans. Being a California mortgage lender, we have the expertise to find the right loan for you.
Enjoy a mortgage process built for the modern world.
Borrowers can easily complete a loan application, upload supporting documentation, eSign disclosures, and monitor the status of their loan — in a single, easy-to-use location. Apply Securely Online
Glossary Of Terms
A change order is an official recognition of a change to the construction/renovation plans and specifications, and to the project budget
Construction Loan Disbursement Request/Authorization
This form is used to request a draw from the construction loan funds. It must be signed by both the borrower and the contractor. The approved budget must be referenced when completing this form, and the specific payees (subcontractor or supplier) who will be paid by the contractor must be identified. The form must be signed by both the borrower and the contractor.
Contingency funds are funds included in the construction/renovation budget to cover possible cost overruns and/or change orders. Contingency funds are common with renovation loans, but not as common with new construction. However, not all loans include a contingency fund.
The lender will fund deposits on certain items that have been documented by an invoice. Deposits for which reimbursement is sought must be for custom and/or specialty items and are limited to 50% of the budget for the item.
Any fees or portion of fees that are unused after the completion of construction or renovation (e.g., inspection fees, survey fees, title update fees) will be refunded to you within 30 days of conversion of a construction loan to the permanent phase or the closeout of the renovation escrow.
A minimum of 10% of the total construction hard costs must be held for the final draw. Final completion documentation will be required prior to the release of the remaining funds. Support documentation such as invoices and Unconditional Waiver of Liens for the previous draw must also accompany the final draw.
A funding notification is a notice that funds have been disbursed following a draw request. Wire disbursements will receive an email with the confirmation number and amount. Funds disbursed by check will be notified via the next-day delivery of the check by UPS.
A line item is a part of the construction budget that shows the amount budgeted to complete a particular component of the home.
A permit is an authorization from the local building authority to begin work on a construction project. It is also used by the building authority to identify properties in need of inspections during and after completion to ensure they were constructed according to applicable building codes. The permits for your project must be submitted to our Vendor no later than with the first draw request.
A site inspection is an on-site review of the progress of construction/renovation by a local inspector in order to make a determination as to whether the work or materials for which draw funds have been requested has actually been completed or are on site. The loan administration Vendor will order a site inspection from a local inspector each time a draw request is received. An additional site inspection prior to releasing the final draw; this inspection will be made by the property appraiser to ensure the construction/renovation was completed as originally planned. Inspections typically will be conducted 24-48 hours after the Vendor receives the draw request. The local jurisdiction may also require inspections at various points during the construction or renovation process.
Standard Draw Requirements Letter
The Standard Draw Requirements Letter is a state-specific document which outlines the requirements for requesting a draw in the state(s) to which the letter applies. The top portion of the letter will specify the applicable state(s). It is important to reference the correct Standard Draw Requirements Letter for your state to avoid delays in processing draw requests.
A survey is a geographic mapping of your property boundary lines, setback lines, utility easements, etc. A survey is required for your project after the foundation is poured to confirm it was poured within the legal lot limits. For renovation loans, a survey is generally not required unless the footprint of the home is changed (e.g., due to an addition).
One Time Close Construction Loan
Contact us if you have any more questions about this one time close loan product.
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325 Soquel Ave Santa Cruz CA 95062
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