Plaza Home Mortgage, Inc., a wholesale and correspondent mortgage lender, has unveiled a One-Time Close Construction-to-Permanent loan program designed for mortgage brokers and their borrower and builder clients.
The new program, which is offered through Plaza’s wholesale channel, provides 30-year fixed- rate financing to be locked-in at the beginning of a home-building project and the efficiency and cost savings of a single closing as opposed to dual closing.
“The borrower is approved for both the construction loan and a permanent 30-year mortgage at the outset of the project,” said Jeff Leinan, executive vice president for national wholesale production at Plaza Home Mortgage. “There is one closing and one set of closing costs, and the interest rate is locked during the construction period and has a float down option. This is just the kind of product that mortgage originators need to build their business.”
The program can be used for a number of owner-occupied primary residences and second home properties, and can cover construction periods of six, nine or 12 months. Standard conforming and high balance loan amounts are available with loan to value ratios of up to 70 percent. Closing costs may be financed, and there is no cost to the builder. The borrower is qualified at the beginning of the project and there is no need to re-qualify once the construction is completed.