The process of building a home can be a long and complex endeavor. Most homeowners are intimately involved in the planning and design of their dream home—a process that can last from six months to two years (and beyond!). As such, customers need a mortgage product that will take them from groundbreaking to closing.
Vectra Bank’s One-Time Close loan allows homebuilding clients to lock in their interest rate up front. Therefore, there’s no rate uncertainty or need for requalification. The loan covers the lot purchase, construction, and permanent financing.*
One-Time Close Offers Bevy of Benefits
While a fixed rate during construction is a huge advantage, it isn’t the only one. Customers are particularly satisfied with the structure of Vectra’s One-Time Close loan. For example, borrowers make interest-only payments on the outstanding balance of the loan, rather than paying interest on the entire loan amount. The monthly payments increase as the home is completed and draw requests are made by the builder. Simply put, as the balance of a loan increases, so does the payment, so this feature can save borrowers thousands of dollars over the life of the loan. The customer is qualified up front and then works directly with their contractor to build the house. The best part is upon completion, the customer doesn’t have to requalify for the permanent loan.
High-Touch Interaction a Plus for Everyone
Compared to a traditional mortgage loan, the One-Time Close customer experience tends to be “high-touch” and a source of satisfaction for all stakeholders involved.
Not only is One-Time Close a smart option for homeowners, builders have also discovered its benefits. Instead of arranging financing, they can focus on what they do best: constructing the homes of their clients’ dreams.
Interested in how you can benefit? Contact a Vectra banker today to learn more.
*Loans subject to credit approval; terms and conditions apply. Not available on investment homes. Contact a local branch for full details. Equal Housing Lender, NMLS #467014. A division of Zions Bancorporation, N.A. Member FDIC.
