New Home Construction Mortgages

Build and finance your dream home with Planet Home Lending’s affordable and convenient solution – One Time Close.

With 3-, 4-, 6-, 9-, and 12-month construction terms and surprisingly low down payments, Planet can empower your home construction dreams. Reach out today!

Planet’s One Time Close is a single-closing home mortgage for building a custom home in the location you want. It starts with a construction-to-permanent mortgage. That’s a fixed-rate home loan that pays for construction then converts to a permanent mortgage when your custom home is complete – without the worry of potential interest rate hikes.

Lock your rate today for your future tomorrow with a One Time Close home loan.

With only one closing and no builder carrying costs, One Time Close is convenient and affordable for today’s homebuyers and home builders.

Get in touch with one of our mortgage professionals today: 888-966-9044. See why our motto is, “We’ll get you home.”

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When does a One Time Close loan make sense?

If you need to borrow less than the conventional loan limits ($766,550 in 2024) a One Time Close loan may be a good choice.

With interest rates rising, a One Time Close home loan helps you to lock in your rate when you qualify for your home loan.

If you own your property, a One Time Close loan may let you take advantage of the equity in your land to build your home with little or no down payment.

When does a construction-to-permanent loan make sense?

When you want to build a high-value or unusual home, especially one on a big lot, a construction-to-permanent (CTP) loan may be a good choice. That’s because large or unusual homes and those on large lots don’t typically qualify for conventional financing.

How is a construction home loan different than a traditional home loan?

A construction loan lets you buy the home you want in the place you want to live. A traditional mortgage lets you buy a home in a subdivision or an existing home.

What do I need to consider before applying for a construction loan?

Do you mind waiting for your new home to be built? It takes an average of 7 months to build a new home. But it could be faster or slower where you want to build based on waiting times for new home construction permits.

What’s the difference between a loan to buy land or a lot and a construction loan?

Sometimes, people buy a lot or land while waiting for their new home building permit to come through. Land and lot loans typically require a 30% down payment. If you don’t have the cash for that, you may be able to get a second mortgage to cover that cost.

After you buy the land or lot, its value is included in the estimated completion value of your new home based on the current market value of your home upon completion. That can make it easier to qualify for a construction loan as well as take advantage of the future value to reduce your monthly mortgage payment.

Here's an example to explain how that would work:

You buy a lot for $100,000, putting down $30,000 (30%). The new home will be worth an estimated $400,000. When you apply for a construction loan, your home equity will be $100,000 (the value of the land). That $100,000 is a 25% down payment on the $400,000 home.

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What’s the difference between a One Time Close home loan and a Construction-to-Permanent home loan?

With a One Time Close construction loan (OTC), you get a home loan to build a new home on land you own, or to build using a lot and home package. The interest rate and approval is set when you take out your One Time Close home loan. You have peace of mind knowing what your rate will be and you will not need to qualify again when the home is complete. You can enjoy the process of getting your keys and moving right in.

With a Construction-to-Permanent (CTP) loan, you split the steps in two. First you take out a construction loan to pay the home builder. When the home is finished, you take out a permanent loan to pay off the construction loan. The interest rate on that permanent loan is based on the going rate when your home is complete and you will have to qualify for the permanent loan at the time of completion.

What other loans are used for home building?

When you’re buying a home, tearing it down, and building a new one on the same foundation, you may be able to use a renovation purchase home loan.

People sometimes do this instead of building from the ground up because it may save a lot of money on permits. Renovation purchase home loans are also used to buy a home with safety or health issues that prevent you from getting a traditional mortgage.

Can you build a home with an FHA loan?

With just one loan, you can finance both the land and the construction costs, streamlining the entire process. What makes it even more appealing? You only need a 3.5% down payment, and don't worry if your credit isn't sparkling; a less-than-perfect score can still get you on the path to homeownership with an FHA One Time Close construction home.

What are new home construction loan rates today?

Since these rates can fluctuate rapidly, sometimes even within an hour, it's best to get the most up-to-date information. Contact us at 888-966-9044 or request a quote, and we'll be happy to provide you withthe latest details on how you can secure the best possible rate.

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Planet’s One Time Close is available in AK, AL, AR, AZ, CA, CO, CT, DC, DE, FL, GA, IA, ID, IL, IN, KS, KY, LA, MD, ME, MI, MN, MO, MS, MT, NC, ND, NE, NH, NM, NV, NY, OH, OK, OR, PA, RI, SC, SD, TN, UT, TX, VA, VT, WA, WI, WV and WY.

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