One-Time Close New Construction Loans

Great opportunity for one-time close construction loans in Whitefish, Kalispell, Columbia Falls & all of Montana.

What is a Single or One-Time Close New Construction Loan?

A one-time close or single close new construction loan is a single closing construction loan on new home builds. The construction portion of the loan is short-term financing that is adjusted to conventional financing upon completion of the project. If you're looking for a single close construction loan in Whitefish, Kalispell, Columbia Falls, Bigfork or anywhere else in Montana, Flathead Valley Mortgage can help you use this tool to close on your dream build or even refinance your existing build.

Home Buying Coule Viewing What a Single Close Construction Loan Does

How can I use a one-time close new construction purchase loan?

A one-time close new construction purchase loan is intended for borrowers who are purchasing both the lot/land on which the home will be built, as well as the funds to build the home. The funds to build the new home are intended to pay the contractor for the construction of the new home. In other words, the loan amount includes both the sum of the sale price of the lot, as well as the cost to construct the property (minus a down payment).

How can I use a one-time close new construction refinance loan?

A one-time close new construction refinance loan is intended for borrowers who already own the lot/land in which the new home will be built. The borrower in this case is using the loan funds to pay off any existing liens on the lot or land, as well as to finance the construction of the new home. The sum of the loan includes any existing financing from the previous lot/land purchase and the cost to construct a new home.

General Terms & Parameters:

  • Conventional 15 & 30 Year Fixed Rates Available
  • Conventional 7/6 and 10/6 Adjustable Rate Available
  • Primary, Second & Investment Property Options
  • 11 Month Maximum Build Period w/1 Month Modification Period
New Home Construction

How are new construction loans structured?

New construction loans are structured with a construction period consisting of "draws" in which funds are disbursed to cover construction costs. With these particular loans there is an initial draw at closing that covers the purchase of the lot and initial fees to pay the contractor of the project. From there a draw schedule will be put in place in accordance with the construction contract. Funds are generally released to complete a certain percentage of the project throughout the construction period.

Interest only payments are made during the construction period. Once the construction is completed, the loan modifies to permanent financing in which the borrower will pay principal and interest payments.

Have questions? We're here to help!

Our team of mortgage brokers at Flathead Valley Mortgage are here to help you with any financing questions about the purchase or construction of your new home. If you have any questions about terms, conditions, rates, or anything else you'd like an explanation on, please reach out to us today! We're available by phone anytime: (406) 897-2165. You can also email us by filling out the form on our contact page here.

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