Building Your Home and Construction Loans: What is the Best Choice for Me?

Hello, this is David Xie with the Xie Mortgage Team, and one question that we've been asked recently is what is the best construction loan for you? So, we're going to talk about that in this video, and we're going to talk about the benefits of the product that we offer: the one time close construction loan, versus a two time close construction loan, and how it can benefit you.

Construction loans that they have out there are, you know, you have a two time closed construction loan. Which would require you to close on a construction loan, purchase the lane with that loan, and then go through the process and then you can start building.

Now the building process, as you can imagine, we've got to contend with mother nature and the rates and everything else. So that puts you in an awkward position, especially with the rates going up, because you really cannot lock down your permanent financing, typically, until 60 to 90 days prior to the completion of the house.

But with everything that's going on in the world today, there's a lack of inventory, there's a lack of supplies, and there's a lack of the supply chain and workforce. And we're seeing a lot of delays on the construction loan. And that's where I come in with a one time closed construction loan so that you can secure your rate and you will know that your cost is going to be somewhat limited and you'll know what your cost is upfront.

So with a two time closed, you're paying the construction loan, closing cost front on the first loan, and then you're paying the construction loan or the permanent financing closing cost on the back end. With our one time close, all you would have to do is pay for the closing cost. You'd have your rate locked in, and once the process is complete, you already know what your closing cost and all of your rates are. And at that point, you're just dealing with the builder, and the cities, and utilities and the certificate of occupancy.

Now our construction loans are offered on all of the major products. So your USDA rule loan, we can do also do a construction loan on VA loans at a hundred percent financing. We can do FHA construction loans and we can do conventional construction loans.

Now, with the conventional construction loans, we can also do those on a second home and that's extremely beneficial, and you guys have seen me talk about second homes in the past. So be sure to click the link above so that you can see the video on the second home.

I'd love to help you with that construction loan. So please feel free to reach out to the Xie Mortgage Team at (757)-478-8493, and it would be an honor to serve you on your construction home loan purchase.