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FAQs about United Community Mortgage’s Construction-to-Permanent and Construction-Only Loan Products

  • Posted on February 06, 2024

Financing a new home build might be something you’ve never done before. At United, we’re committed to making sure you know what to expect every step of the way. That’s why we put together this guide to help you navigate the process.

What does “one-time close” mean?

When you choose our construction-to-permanent loan, we’ll close both the permanent and construction phases of your financing at one time, before your build begins. A single closing means you only have to attend¾and pay for¾one closing.

You can take advantage of that one-time close if you’re building a home up to the conforming loan limit.


What construction loan programs are available through United Community Mortgage?

We offer two types of loans--construction-to-permanent and construction-only.

Our fixed-rate construction-to-permanent loan allows you to lock in the current market rate for 12 months. When construction is complete, you have the option to “float down” to the current market rate if it’s lower than the rate you locked. You’ll then keep that rate through the life of your loan. This fixed-rate option can be used to finance a home up to the conforming loan limit.

A lot of customers building a new home are looking to borrow more than the conforming loan limit allows. In that case, we offer a construction-only option to finance the home’s construction. When construction wraps up, we’ll work with you to secure permanent financing for the property through one of our other home loan products.


How does construction financing work?

While you’re building your home, you’ll only pay interest on the amount of money that has been used. That interest rate matches your note rate, and we give you and your builder the freedom to determine the draw schedule that works best for you. 


How long do I have to build my home?

Our loan programs allow up to 12 months for construction.


How do I schedule draws?

We’ve invested in an online draw platform that makes requesting draws easy and convenient for you and your builder. You’ll both receive separate logins, so you can access the platform anytime from anywhere.


How do I get started?

Ready to learn more about exactly what will go into building the home of your dreams? Click here to connect with one of our local lenders or apply now to get started on your application right away.

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