Home > Financing Programs : Construction 1Close Loan

Construction 1Close Loans - 1Fee, 1Loan, 1Rate

A Construction 1Close loan is mortgage financing for new home construction. This program combines financing for a lot purchase (or lot payoff), home construction costs and mortgage into "1 loan".

There are 2 phases to this program: an "interest only" construction phase and a permanent mortgage phase; however, there is only 1 closing. The borrower pre-selects a construction term of either 6, 9 or 12 months based on the amount of time needed to build the home. The Builder, or General Contractor, requests incremental draws during the construction phase for payment of materials, supplies and labor. "Interest only" payments are due each month based on the outstanding drawn balance of the construction loan. Once the home is 100% complete, CLC automatically converts the loan into the permanent mortgage; thus, no additional fees, re-qualification, or paperwork is required.

CLC also offers an automatic rate reduction (rate float down feature) of .25%, at no additional fee, upon conversion to the permanent mortgage!

How does an automatic rate reduction work?

For illustration purposes, let's say the Construction 1Close 40-year fixed rate is 7.25%* for a 9 month construction phase term. During construction, incremental "interest only" payments are due based on 7.25%*. Once the home is complete, CLC automatically converts the loan to the permanent mortgage AND the mortgage rate is REDUCED to 7.0% fixed rate for 40-years at no charge!

*Rate subject to change without notice. Illustration purposes only. APR 7.544% based on example for construction phase term @ 7.25%. See rate sheet for current market rate and APR.

Construction 1Close Benefits:

• Finance the lot, home construction costs and mortgage: 1Loan
• "Build On Your Lot" financing - lot balance is paid off with first draw
• 1 close (1 set of closing fees)
• Loan is based from the "appraised value", CLC exclusive - offering low down payments
• 15, 30 and 40 year fixed rate loan options
• Financing for primary residence, second homes and investors (fully documenting income)
• CLC is the lender, we do not outsource your construction loan or mortgage