Your dream home starts here with Greenway’s USDA One Time Close Construction Loan. With 100% financing and a low minimum credit score, this program is designed to provide you flexibility and affordability, so you can build your perfect home – all with just one application and one closing.
USDA Construction Loans are rare, so if you’ve been struggling to find a lender offering one, you’ve come to the right place. Greenway Mortgage has an entire suite of Construction Loans available.
The Lowdown on the USDA One-Time Close Construction Loan…
To increase economic development in rural areas, the Federal Government created USDA loan programs. The One-Time Close USDA Construction Loan allows clients to take out a single loan for the construction of a home, combining two loans into one which simplifies the overall financing process.
The USDA Construction Loan is an affordable way to build your own home as it requires no money down*, has a competitive interest rate, and requires only one closing which saves the homebuyer a considerable amount in closing costs. For these reasons, the USDA Single Close Construction Loan is a popular option for construction projects.
What are the Program Details for the USDA One-Time Close Construction Loan?
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1 time close
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Owner Occupied (1 unit);100% LTV
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0% down required, depending on loan size*
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680 min credit score
*Finance up to 90% of the project (purchase price + cost to construct). Eligibility requirements, exclusions, and other terms and conditions apply.
What are the Benefits of a USDA One-Time Close Construction Loan?
Some of the key benefits include:
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Consolidate construction & purchase price for only 1 set of closing costs & fees
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Purchase a teardown property
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If you already own an empty property & want to build a home, tear down & put up a new one, or do a major renovation on an existing home
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Pay just interest-only payments during construction
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Avoid requalification post-construction
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Simple & flexible draw process with no set schedule
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Use qualified licensed builder of your choice (self-build not allowed)
What are the Alternatives to a USDA One-Time Close Construction Loan?
A USDA Construction Loan is only one of the many options for those who are interested in building their own home. And Greenway Mortgage offers them all! Some other options borrowers might want to consider include:
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VA One-Time Close Construction Loan: Tailored for veterans and individuals on active duty with the military who would like to build a new home. Click here to learn more about our VA Construction Loan.
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FHA One-Time Close Construction Loan: Helpful for borrowers who might not live in a rural area yet still want to build a new home. Click here to learn more about our FHA Construction Loan.
There is an option out there for everyone seeking to build their dream home!
Bottom Line
If you are looking to build a new home or do a major renovation on an existing home, the mortgage experts at Greenway Mortgage are here to provide you with the services you need to get the job done. With construction mortgage experts on your side, you’ll be sure to have a smooth process and in the end your dream home. Contact us today to see if you qualify or to learn more about our One-Time Close Construction Loans.
How Do Construction Loans work, you might ask?
Overall Process:
- Builder Approval
- Project Approval (appraisal, plans & specs, costs from builder)
- Borrower Credit Approval
- Initial Draw at Close (up to 50K) to get a project started and/or reimburse for any materials already purchased
Construction Period
- Post close welcome call from the construction management company
- Inspections are done as work is put in place, then checks for draws issued to builder and borrower
- Once work is done, the loan is modified into a standard 30-year fixed loan at present market rates (vs. the interest-only loan in place during construction). Borrowers can pay down the balance on a converted loan in the event other property they owned has been sold in the meantime. No additional closing costs when the loan converts.
Specialized Features
- Stalled projects
- Modular construction
- Major renovations (projects beyond scope of renovation programs)
Remember, Choosing an Experienced Lender is Critical
A construction loan is more complex than a standard mortgage, with more moving parts and more specialized expertise required.
Greenway Mortgage has the knowledge, experience, and proven process to guide you through the construction loan process as you build your dream home. To learn more about our construction loan program and find out if you qualify, contact us to discuss your project.
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