Home builders often have an uphill battle convincing potential clients to embark on the adventure of building their own home versus buying an existing property. The number of details, length of the building process, and time involved can feel overwhelming, making purchasing an older home or a spec home more attractive. Anything that makes the entire process easier will be of interest to home builders.
Which leads to the question: Are the builders aware of your One-Time Close construction loan program?
With a One-Time Close mortgage, available as either an FHA or VA loan, there is a single closing to arrange the lot purchase, construction financing and permanent home loan all at once.
The process is simpler for the homeowner, simpler for the builder, and gets all the financing questions out of the way before even breaking ground. There is no need to re-qualify the borrower when the home is nearing completion, and no interest rate risk watching the market and waiting for the final closing.
Home builders from small crews building one home at a time to large operations constructing entire neighborhoods can be an excellent source of new business when they learn how these programs can help them turn more of their leads into new homes. Reach out to them by phone, mail, email, or in person to present the basics of the programs and the benefits to everyone involved.
Benefits to the borrower:
- No payments during construction.
- Lower cost – one appraisal, one set of closing costs – this all helps the borrower save money.
Benefits to the home builder:
- Simplified process.
- Less risk of financing issues interfering with the project at completion as the rate is locked up front and the borrower does not need to be re-qualified at the end of construction.
Photography by [dolgachov] © 123RF.com
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