States

Oklahoma Single Close Construction Loans

Oklahoma, known for its diverse landscapes and booming real estate market, offers a variety of financing options for those looking to build their dream homes. Among these, single close construction loans have gained popularity due to their convenience and streamlined process. This article delves into the nuances of single close construction loans in Oklahoma, shedding light on how they differ from other types of construction loans and the benefits they offer.

What is a Single Close Construction Loan?

A single close construction loan in Oklahoma is also known as a construction-to-permanent loan. This means one loan for the construction phase and one loan for the permanent mortgage. Borrowers only have to go through the approval process once, no need to secure separate loans for different stages of the construction project.


Single Close Construction Loans in Oklahoma Benefits


One Closing, One Loan: Unlike traditional construction loans that require two closings, a single close construction loan in Oklahoma consolidates everything into one closing. Less paperwork and administrative work for borrowers and loan officers.


Fixed or Adjustable Rates: Oklahoma lenders offer flexible terms, borrowers can choose fixed or adjustable rates. Depending on the borrower’s financial situation and market conditions.


Interest Only Payments During Construction: During construction phase, borrowers in Oklahoma typically make interest only payments, which can be a big financial relief compared to making full principal payments from the start.

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The Application Process

The application process for a single close construction loan in Oklahoma involves submitting detailed plans of the new construction project. This includes blueprints, a construction timeline, and an appraisal of the property. Once the construction begins, funds are disbursed in stages to cover various phases of the project.

FHA and VA Construction Loans

For those who qualify, Oklahoma has FHA construction loans and VA loans which are government backed and great for first time homebuyers and veterans respectively. These loans require lower down payments and more lenient credit requirements than traditional mortgages.

Private Money Lenders and Hard Money Loans

In Oklahoma private money lenders and hard money lenders are also an option for new construction. These lenders offer short term loans with interest only payments which can be great for real estate investors looking to complete their projects fast.

Oklahoma Borrower Considerations

Lender Selection: Lender choice is key. First Bank, TD Bank and various local lenders in Oklahoma offer construction loans with different terms. Talk to loan officers to see what options are available.


Down Payment and Equity: The down payment for a single close construction loan in Oklahoma can vary. Some lenders require a large down payment while others will be more lenient especially if you have a lot of assets.


Flexibility: Oklahoma lenders offer flexible financing options which can include interest only payments during construction and the ability to convert the loan to a permanent mortgage upon project completion.


Application Process: The application process in Oklahoma involves a thorough review of the borrower’s financials, the construction plans and the builder’s credentials. Make sure to have all necessary documents ready to make the process smooth.

Conclusion

Single close construction loans in Oklahoma offer a streamlined and efficient way to finance new construction projects. With the convenience of one closing, flexible payment terms, and the option to choose between fixed and adjustable rates, these loans are an attractive option for those looking to build their dream home in the Sooner State. Whether you’re a first-time homebuyer, a seasoned real estate investor, or someone looking to leverage FHA or VA construction loans, Oklahoma’s lending market has several options to cater to your needs.

Choose Bob Fabian with GO Mortgage

If you need a construction-to-permanent loan in Oklahoma, ask Bob Fabian, a licensed lender with years of experience providing quality service. Bob offers consumers the best guidance connecting them with great interest rates. He supports every step of the way in the construction-to-permanent process. Whether residential loan types, multi-family units, single closing, accessory dwelling units, two-time close construction loans, construction-to-permanent loans, and traditional mortgages, Bob Fabian’s got you covered.

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Single Close Construction Loan FAQs

Below is a compilation of frequently asked questions regarding single close construction loans. These questions cover various aspects of the loan process, eligibility requirements, benefits, and other key details. Familiarizing yourself with these commonly asked questions can help you gain a better understanding of single close construction loans and make informed decisions when considering this financing option.

  • What type of property can I finance with a single close construction loan?

    Single close construction loans apply to a wide range of property types. When you connect with us, we’ll discuss whether your property and build type will qualify.


    Below are common property types we’re able to finance with single close construction loans:


    Single family residences

    Owner occupied

    Modular

    Manufactured

    Site built

    Stick built

    Doublewide

    Factory built

    “Build on your lot”

    Land home

    Barndominiums

    Post Frame

  • Do I need good credit to qualify for a single close construction loan?

    Credit is one factor used to decide how much you can finance with a single close construction loan.


    The minimum requirements vary depending on the loan program. In many cases, a credit score of 640 or higher is often best. A credit score of 700 or above is considered low risk, while a score of 800 to 850 is exceptional.


    We will examine your entire financial outlook and work with you to find a loan solution that meets your needs, considering many factors including your credit score, current income, and investments.

  • Do I need a down payment for a single close construction loan?

    Whether you need a down payment for your loan depends on the specific loan program you decide to use. 


    Our single close programs offer down payments anywhere from 0-3.5% to a maximum of 5%. This is a small fraction of what other lenders typically ask for with traditional construction loans, which require a down payment of around 20% to get the best loan terms.

  • How do single close construction loan interest rates compare to other construction loans?

    Interest rates for single close construction loans vary based on a variety of factors including your credit score, the location where you want to build, your loan type, and loan amount.


    To know what interest rate your situation would qualify for, get in touch with one of our loan advisors for more specific information.

  • What happens with financing after closing a single close construction loan?

    Most of the lending process will be handled for you behind the scenes by our team and your builder. You’ll just want to be ready to discuss your needs with your builder and read contracts closely at each stage of the process. We’re always here to help.


    With a single close construction loan, you receive both an interim construction loan and a 30-year permanent loan at the same time. You get a single promissory note and one deed of trust. You’ll sign the 30-year amortizing promissory note at closing.


    Once the promissory note is signed, any liens on the land will be automatically paid off. A draw amount will be made available to the builder so construction can start right away. 


    When the project is complete, you’ll receive a loan modification to amend the date for first payment. After the loan modification is signed, the 30-year amortizing loan works like any other home loan with fixed interest rates.

  • How does my lender get involved with the construction of my new home?

    We have an in-house single close construction management team. Using our years of experience and home-building expertise, our experts review and approve documentation from every stage of construction.


    This includes project budget and timeline, planning and specifications, permits and inspection, and building code best practices.


    At the start, you’ll want to find and engage the builder of your choice as long as they meet the quality standards for our program. Our builder vetting process ensures that all builders accepted into our program have a sterling record of on-time completion for their home projects. Quality, safety, and efficiency are our top priorities.


    Our team will help keep your project on track every step of the way. This allows potential problems to be dealt with before they can turn into major delays.


    Our completely hands-free building process means you never need to worry about applying for building permits or arranging inspections as your construction takes shape. It is all handled for you. The documentation you might need in the future is centralized all in one place.

  • Are there other names for single close construction loans?

    Single close construction loans have other names as well.


    As you work with builders and lenders, you might hear single close construction loans referred to as single close loans, construction-to-perm loans, one-time close loans, construction conversion loans, CTP loans, or even all-in-one loans.

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