Are Single Close Construction Loans Better Than Traditional Construction Loans?
Single close construction loans do not necessarily work out to be better; they just work better with some borrowers. They bundle construction and permanent financing into a single loan which results in a single closing, minimal fees and the opportunity to lock-in your interest rate. Conventional construction loans are however more flexible and allow a better chance to shop at a better mortgage rate once the building is made. The correct choice will be based on your budget, timeframe and comfort on rate guarantee versus flexibility.