Building a Home or Working With a Buyer Who Is?

by Tim Hart | Dec 15, 2022 3:04:37 PM

Building a Home or Working With a Buyer Who Is?

Don’t Miss This Awesome Loan Opportunity!

For the last couple of months, my team and I have been getting a lot of questions about construction loans. After Ian, this makes sense—and fortunately, we have a lot of options. One of my favorites, which I think every homebuyer, realtor, and builder should know about, is the single-close construction-to-permanent (SC CTP) loan.

What is a single-close construction-to-permanent (SC CTP) loan?An SC CTP loan combines a construction loan and a permanent loan into one transaction with one settlement for the borrower. Say you want to build a home for yourself, or you’re a realtor with a client who wants to build a house. This is a great loan type for you because it lets you lock in the permanent loan rate and fees for everything before closing—and as it says in the name of the loan, there is only one closing! This is a huge time and money saver.

Designing Your New Construction Home

It’s also a win-win-win for the borrower, the builder, and the realtor. The borrower can rest easy knowing they have all of their information up front. The builder and realtor can relax too, because even if the borrower loses funding, the deal will go through. With this loan type, the borrower doesn’t need to re-qualify at the end of the home-building process (unless they used a conventional loan and it takes more than a year to reach closing)

The conventional loan is just one of the loan types we offer at VanDyk Mortgage. Here is a quick rundown of all of our product offerings.

Find the Right Loan Type for You (or Your Client)

Self-Employed—This is the loan you want if you own your own business. Homebuyers can qualify for this loan without using their tax returns! We only ask for bank statements to qualify them.

Investors—This is the best loan type for anyone building a home as an investment property. Again, buyers don’t need to submit tax returns to qualify for this loan. We can use their rental income to determine whether they qualify.

Federal Housing Administration (FHA)—This is an excellent loan for first-time homebuyers with less-than-perfect credit. We offer FHA loans with only 3.5% down.

Veterans Affairs (VA) and U.S. Department of Agriculture (USDA)—These loans are ideal for veterans, active-duty military, and low-income homebuyers who want to build in rural areas. With these loans, we can offer100% financing.

Conventional—Didn’t fit into any of the other categories? This is your loan. We can offer conventional mortgage loans with just5% down

Born and raised in Southwest Florida, I have been in the Mortgage business since 2001 I'm a grizzly, battle tested mortgage veteran. I am also the Host of Rates & Reels, which is the most popular fishing show in Southwest Florida, hosted by a guy named Tim. In my spare time I love spending time with my family, coaching baseball, and anything else my kids or wife want me to do. I would be happy to help you or someone you know with any of your Mortgage needs.

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