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WHAT IS A SINGLE CLOSE CONSTRUCTION TO PERMANENT LOAN?

A Single Close Construction to Permanent loan is a home mortgage that can be used to close both the construction loan and permanent financing of a new home at the same time. They are sometimes referred to as "construction to perm", "one time close", "construction conversion", "CTP", or even "all in one" loans. 

Single Close Construction

BENEFITS FOR YOU

A single close transaction with no re-qualification after completion and no second closing with additional closing costs.

  • Available for single-family, primary residence and second homes
  • Permanent financing guaranteed up-front for you
  • 0%, 3.5% and 5% down payment options available
  • Fannie Mae, FHA, VA and USDA loan products available
  • Available for manufactured, modular, or a stick-built homes - Build your dream home on your land

 

"Rory ensured I understood every step throughout the process. He demonstrated patience by always being available to answer questions, regardless how many times it took for me to understand. He's also been very supportive. When I wanted to give up, Rory was there to reassure me. Thank you seems so small for such exceptional service Rory has provided. He's been amazing!" Reviewed by Marcia A. 

 

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WHO IS GSF MORTGAGE CORPORATION?

GSF Mortgage Corporation is a direct seller and servicer to Fannie Mae and Freddie Mac Direct Lender as well as a Ginnie Mae issuer, meaning that we have direct access to nearly every mortgage product available. We have been in business since 1995 and pride ourselves on consistency and integrity. Our teams are trained at the highest level to offer FHA, FNMA, USDA, and VA Single Close Construction loans.

Our construction management team has the experience and expertise to review and approve the project budget, plans, and specifications, adding that extra layer of protection. They are there to manage the construction phase, from ordering inspections, to making sure the house is built to code.

HOW DOES A SINGLE CLOSE CONSTRUCTION LOAN WORK?

The Single Close Construction loan offers both the interim construction loan and the permanent 30-year loan under one promissory note and one deed of trust with a single loan closing. 

You would sign a 30 year amortizing promissory note at closing. At this time, any land liens will be paid off in addition to a first draw amount for the builder to begin construction. Upon completion of construction, the loan modification to amend the first payment date will be sent to you for your signature.

After loan closing, our construction management team will handle the construction administration including draw requests and inspections. They will follow the project through completion. You will need to sign off on final draw. 

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1. Builder Review

 Find the right builder and have them work directly with GSF Mortgage Corp.

 

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2. Contract Preparation

GSF Mortgage Corp. will work with you to determine if the home you selected is within your budget, and with your builder to determine the cost to build your home and finance it. 

 

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3. Contract Signed

Once a purchase price is determined, you and your builder will provide a signed contract to GSF Mortgage Corp. and the loan approval process will begin.

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4. Project Review And Underwrite The Loan

Your loan will be submitted for a construction project review and to our underwriting department to approve the permanent portion of the loan. 

 

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5. Loan Closes

Once the paperwork is signed and your loan has closed, the construction of your new home can begin!

 

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6. Construction Begins

 GSF Mortgage Corp. will manage the construction phase from ordering draw inspections, and any state required surveys and inspections.

WHY A SINGLE CLOSE CONSTRUCTION LOAN?

  1. YOU ONLY NEED TO QUALIFY ONCE
    Traditional construction loans require you to qualify up to three times - once for the construction loan, once for the permanent "take-out" loan to prove that they can pay off the construction loan and then again for a year later when the house is actually complete due to expiration of original loan approval and documentation. With our single close construction-to-perm loan, you will not have to re-qualify when the home is completed. constr photo 4

  2. SINGLE CLOSE QUALIFICATION PROCESS REDUCES RISK
    There is an element of risk in a traditional construction transaction if you have to re-qualify at completion. If circumstances prevent you from being able to qualify for a new permanent loan, you might be unable to pay off the construction loan at maturity and could be forced into a loan workout or even lose the house in a foreclosure action. This element of risk is eliminated by a Single Close Construction loan.

  3. FIXED INTEREST RATES
    With the Single Close Construction loan, the interest rate during construction is predetermined as is the interest rate of the converted permanent loan. 

  4. REDUCED CLOSING COSTS
    Mortgage loan closing costs can be a significant expense - usually 3% to 4% of the loan amount. Closing one loan instead of two can save you thousands of dollars. 

  5. SINGLE APPRAISAL VALUATION ELIMINATES SURPRISES
    The Single Close Construction loan usually only requires one appraisal prior to closing the loan. No second appraisal when the home is completed.