Save with a One-Time Close Construction Loan

According to U.S. Census data, Idaho and Utah are among the top states in the nation for population growth, and the pressure on existing real estate is a real frustration for those looking to buy.

With current home inventory in short supply, many buyers are choosing a different route: building a home. Although sometimes considered the slower and more expensive option, it doesn’t have to be.

If you’re planning on building rather than buying, consider saving both time and money with a Zions Bank One-Time Close Construction Loan.* The phrase “one-time close” refers to the fact that the lot purchase, construction and permanent loan are all included in one home loan transaction. This means there is only one set of home loan closing costs and loan documents.

Jeremy Holmgren, state manager for Zions Bank Home Finance, offers the following three reasons to apply for a Zions Bank one-time close construction loan.

Zions Bank One-Time Close Construction Loan Benefit #1: A single home loan closing

The one-time close construction loan program provides a fixed-rate, interest-only payment during construction. Upon completion of the home, the loan is fixed in for the specified 7/1 ARM or 10/1 ARM — all approved and completed as a single closing.

Holmgren notes that clients who want a fixed-rate loan have the option to refinance the existing construction loan once the home is completed. This option would be subject to current market interest rates at the time of home completion.

Only those funds drawn from the construction loan are charged interest, Holmgren explains, and only the outstanding balance becomes a permanent long-term loan. If the money is not drawn, it is not charged interest.

Zions Bank One-Time Close Construction Loan Benefit #2: Interest rate certainty

Another benefit is that it provides borrowers with interest rate certainty from the start, which is especially beneficial in an environment where home loan interest rates are subject to change.

“You can get your rate locked in now and get started building your home,” Holmgren says. “As we have all seen in recent weeks, interest rates are on the rise.  Our One-Time Close Construction Loan allows you to lock in the rate now to avoid the risk of interest rates rising during the construction phase. It’s one of the biggest advantages of this loan.”

Zions Bank One-Time Close Construction Loan Benefit #3: Flexibility

In the event the completion of your new home is delayed, you can take advantage of one extension during the initial construction phase. In addition, there is no maximum construction loan amount, and disbursements to your builder are processed by Zions Bank.

Ready to get started? Contact a Zions Bank mortgage loan officer today to learn more about new home construction loans and get current home loan rates.

*Loans are subject to credit approval. Terms and conditions apply. See a banker for details.