Construction Loans

ONE-TIME CLOSE NEW CONSTRUCTION LOANS

Our One-Time Close New Construction loans provide a unique opportunity. And the best part? One closing! Which means one interest rate (with the option to modify down if the market improves), one down payment, one full credit report to order and one approval. One-time Close New Construction loans are available for VA & Conventional buyers, including Fixed Rates, ARMs, and high balance options, and deliver the faster, easier process we are known for.

BETTER FOR BORROWERS

• Save time and money. One closing means only having to cover one set of closing costs.
• No settling. With new construction, borrowers really can have the home of their dreams.
• Only 5% down. A low down payment makes new construction loans accessible for more borrowers.
• One approval. No need for a second approval.
• Float down option. Once the loan is complete, borrowers can float down to secure a lower interest rate if the market changes or stay locked in no matter how the market moves.
• Initial interest-only payments. During the build period, the borrower can enjoy a lower, interest-only payment.
• Less out-of-pocket expense. The borrower doesn’t have to pay for the build and then get a mortgage. The mortgage pays for the build!

BETTER FOR REALTORS

• More efficient. My Lender facilitates communication with the builder and provides me with checklists for the project approval and builder approval to help keep the approval process moving.
• I can pre-approve your buyers, provide valid pricing, and clear conditions - all before submitting the loan into underwriting.
• No second approval needed. After the first approval, the borrower is good to go, helping to deliver a more seamless, efficient experience.
• Get more certainty. With no second closing, the loan is locked even if the market shifts. Your Buyers also have the option to modify down if the market improves.
• Once the loan is closed, my Lender will handle the rest of the process. They’ll be in direct communication with the builder on subsequent draws, as well as subsequent inspections to confirm the project is on pace.

BETTER FOR BUILDERS AND CONTRACTORS

• Levels the playing field. Gives general contractors more freedom to build unique dream homes for their clients, rather than cookie-cutter developments.
• Get paid faster. Once the loan is closed, the cash is ready to be used for labor and materials. It also saves the expense of having to pay for the build up front and then find a buyer.

One-Time Close New Construction loans provide a faster, easier way to help borrowers get into the dream home they want, while growing your business with new opportunities for referrals.

Call me and start taking advantage of our One-Time Close New Construction loans today!

Frequently Asked Questions About Construction Loans

What is a construction loan and how does it work in Indiana?
A construction loan is short-term financing for building a new home. Rather than one lump sum, the money is released to the builder in draws as milestones are completed, and you pay interest only on what has actually been drawn. With a one-time-close construction-to-permanent loan, the structure I lead with, that same loan converts into your permanent mortgage when the home is finished, so there is one closing, one set of closing costs, one credit approval and one interest rate.

What is a one-close construction loan vs. a two-close construction loan?
A one-time-close loan closes once, before ground is broken, and converts to permanent financing when the home is done. A two-close loan means a construction loan first and then a second closing to replace it with a permanent mortgage, two applications, two sets of closing costs, and both your rate and your approval re-tested at that second closing, months later, in a market that may have moved against you. One-time close removes that risk, which is why it is what I recommend for most Indiana builds.

How much down payment is required for a construction loan in Indiana?
On the one-time-close program, as little as 5% down on a conventional build, and no down payment for eligible veterans using their VA benefit. If you already own the lot, its equity usually stands in for the cash down payment, see the next question.

Can I use a construction loan to build on land I already own in Indiana?
Yes, and it is common around Central Indiana. When you already hold title to the lot, a single-close construction-to-permanent loan is structured as a limited cash-out refinance, and the loan-to-value is measured against the “as completed” appraised value of the finished home. That is the mechanism that lets your lot equity do the work of a down payment, if the lot is paid off, that equity often covers the requirement outright. One limit worth knowing up front: this structure cannot be used to take cash out.

How long does a construction loan last in Indiana?
The rules allow a construction period of up to 12 months at a stretch and no more than 18 months in total, and most Indiana builds are scoped to fit comfortably inside that. You make interest-only payments on the drawn balance while the home goes up. When it is finished, the loan converts to a permanent 15- or 30-year mortgage, and because it is a one-time close, that happens by modification rather than a second closing, with the option to float your rate down if the market has improved in the meantime.

Related Resources

• All Loan Programs
• Current Mortgage Rates in Indiana
• Mortgage Calculator
• First-Time Homebuyer Programs
• Get Pre-Approved / Contact Greg