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Benefits of a One Time Closing Construction Loan for Texas Residents

August 2, 2023

Are you a potential homebuyer that’s frustrated with high asking prices and homes in your local real estate market that fall short of expectations? Instead of settling for a house that doesn’t quite meet your needs, constructing a new custom home may be a better choice.

Discover how you can build the new home of your dreams with a one time closing construction loan from Texas Gulf Bank. This type of personal loan may create several important benefits for you and your family.

Learn more about the opportunity to construct the home you’ve always wanted with the support of an efficient lending process.

What Is A One Time Closing Construction Loan?

Unlike traditional loan programs for new home construction, a one time close construction loan simplifies the lending process for borrowers. Instead of applying for separate loans covering the land, construction phase, and long-term financing, borrowers complete a single loan application and loan closing for all their financing needs.

It can be the ideal loan option for potential homeowners since it provides the reliable funding needed for all stages of construction as well as your mini-permanent* home loan – with one convenient and streamlined loan program.

*NOTE: Some creditors may offer one-time-close construction loans that include a permanent mortgage, but Texas Gulf Bank’s one-time close construction loans only include a mini-permanent mortgage.

If approved for financing, your construction funding becomes available immediately to begin construction. Then, when the home is complete, your construction loan converts to a mini-permanent loan.

Single close construction loans are also a popular choice for homebuyers since they can be used for constructing a primary residence, a vacation property, or an investment home. Choosing a one time close construction loan offers clear benefits to borrowers.

Substantial Cost Savings

One of the most important benefits of using a single close construction loan is that borrowers only have to complete one loan closing, which means only paying one set of closing costs. 

Since mortgage closing costs are typically 3% to 4% of the full loan amount, having just one loan closing means borrowers can keep more money in their pocket.

These savings may be applied to other out-of-pocket costs associated with a new home build that aren’t included in general construction costs, such as trees, landscaping, furniture, and home décor. 

Simplified Application Process 

A one time close construction loan also provides a simple and seamless loan process, with borrowers only needing to apply once for all funding needs.

Applying separately for a construction loan or mini-permanent mortgage can be a tedious and complex process since it requires many different types of financial and personal documentation. This single application process saves time and energy.

Fixed Rates

Borrowers interested in a one time closing construction loan will enjoy the benefit of having fixed interest rates for both their construction financing as well as their mini-permanent mortgage, ensuring a smooth transition from the construction to permanent stage.

Having separate loans for construction needs and long-term mortgages means borrowers could face the possibility of having interest rates increase during the permanent financing stage. However, a single close construction loan helps reduce this risk by locking in your interest rate at the time of the loan closing.

Apply for One Time Close Construction Loans 

With over 110 years of banking experience in the Southeast Texas Gulf Coast region, Texas Gulf Bank has offered residents effective and reliable financing options, including one time closing construction loans.

Our in-depth knowledge of the real estate market, along with our strategic loan programs, makes us the ideal lending partner for your home construction needs.

When you choose Texas Gulf Bank for your one time closing construction loan needs, you’ll enjoy a better banking experience.

  • We have no hidden closing fees.
  • We make the loan process easy for the borrower.
  • We do our own underwriting, typically resulting in an expedited loan approval.
  • We are flexible, offering loan solutions that fit your needs.
  • We have extensive lending experience in the region.

Our application process for a single close construction loan begins with an initial discussion to discuss home ownership and construction goals. We will also discuss qualifying factors such as current lot or home ownership, available cash for a down payment, or a contract with a reputable builder ready to go.

To complete the loan application process, borrowers will need to provide financial documentation including, but not limited to:

  • Completed and signed application for a one time close construction loan.
  • Personal Tax Returns for the most recent 3 years
  • Personal Financial Statements for the most recent 3 years
  • Proof of income
  • Statement of existing debts and current assets
  • Property information
  • General Contractor or builder information
  • Construction plans and timelines

Once all required documentation is received, our in-house loan team will promptly begin the loan review and approval process. If approved, funding will become available so that your dream home project can begin.

Get Started on Your Dream Home Today 

If you’re ready to learn more about a one time closing construction loan, contact the loan team at Texas Gulf Bank. We are happy to discuss your home plans and loan needs, and our local lenders can guide you through each step of the application process.

Texas Gulf Bank is ready to help you achieve your home ownership goals.

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consultation with one of our bankers?

All Loans Subject to Credit Approval