You already own {{acres}} acres at {{lot_address}}: one-time close or draws

Because you already own {{lot_address}}, your land usually counts toward the loan, and the choice left is a one-time close loan or a construction loan paid in draws, which changes your paperwork, your timing and your risk.

Hi {{first_name}}, your lot is already an asset. Lenders count the land you own toward the loan, so you may not need a large cash down payment. Your lender confirms that, not us.

One-time close

• One closing covers the construction and the permanent mortgage.
• Your terms are set at that single closing.
• The lender approves you, your plans and your builder up front.
• Funds are released to the builder in stages as work is inspected.

Construction loan with draws

• You pay interest on the money drawn so far.
• You then need a second loan, or a refinance, when the house is done.
• Your final loan terms are set at the end, not the start, so the rate and your approval are checked again.

The trade-off

One-time close gives you certainty and fewer closings. Draws can give you flexibility, and they expose you to changes between the start and finish of the build. Neither is right for everyone.

The decision

Talk to a lender before you sign with a builder. Most lenders need to approve the builder, and they will tell you the cost of your plan they are willing to finance. If you do not have a lender yet, I can introduce you to some who lend in Montgomery County. I am not a lender and this is not financial advice.

Jacob Dow
Builder Connect Group | CB&A, Realtors
(346) 273-1143