Conforming | Conventional
New Home Construction Mortgages
Building your dream home is easier with the right experienced mortgage company by your side! With a Fannie Mae Single Close Construction loan, you can streamline the process and make it more affordable.
This loan gives you the flexibility to either purchase land or build on property you already own, all through a single loan that covers both the construction phase and the long-term mortgage. By combining these steps, you avoid the hassle of multiple loans, making the entire process simpler and more manageable.
In addition, Conforming Single Close Construction loans offer a variety of down payment options, providing you with the flexibility to choose one that best fits your financial situation. This makes building your new single-family home more accessible and affordable.
Conforming Single Close Construction Loan
Our Conforming Single Close Construction loan is a popular choice for individuals building new single-family homes, offering an easier qualification process and a more streamlined approach to financing and construction.
With this loan, you can finance the purchase of your lot, the construction of your home, and the long-term mortgage in one seamless process. A key benefit is that you only need to go through the loan closing process once, eliminating the need for multiple loans at each stage. This simplifies the process and saves you from paying multiple sets of closing costs. Additionally, you’ll only need one appraisal, one loan originator, and one closing.
These loans are insured by Fannie Mae [ Federal National Mortgage Association ], a government-sponsored enterprise that promotes affordable mortgage financing. Because of Fannie Mae’s backing, these loans often come with competitive interest rates. You can also lock in your interest rate before closing, with the option to adjust to the lowest available rate during the construction phase before converting to a long-term mortgage.
The Conforming Single Close Construction loan simplifies the complex process of home construction by providing a comprehensive financing solution.
To get started, connect with one of our mortgage experts, who will gather information about your home plans and assess your eligibility for pre-approval. Your mortgage expert will guide you through the underwriting process, evaluating your income, credit history, and ability to repay the loan.
Features and Benefits:
• 5% Down Payment for Primary Residence
• 10% Down Payment for Secondary Home
• 15% Down Payment for Investment Property
• Loan amounts up to $806,500, or more in high balance areas for Conforming Loans
• 700 Minimum credit score for Conforming / Fannie Mae Programs
• Rate can be locked at any time during the loan application/process
• Simple and flexible draw process. Funds are released based on the percentage of work completed by the Builder / Contractor in the construction period
• Consolidate construction and purchase for only one set of closing costs and fees, loan type and term available in 15-year fixed, 30-year fixed, 7/6 and 10/6 ARM terms only
Eligible Properties Include:
• Stick Built Homes
• Modular Homes
• Detached Condominiums
New Construction Program Requirements:
• Maximum Construction Period is 11 months
• If property is in Wetlands, A Wetlands Certification issued by a local authority and recorded is required
• Minimum Loan Amount of $200,000
• Builder must be approved
Not Permitted:
• No Judgments with an outstanding balance; must be satisfied/paid
• No Self-Builds, Self-Help, Sweat Equity are permitted
• Projected rental income on current residence CANNOT be used for qualifying purposes on new construction home
• No Manufactured homes, 2-4 Unit Homes, attached Condos or Condotels