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December 2018

Found 1 blog entry for December 2018.

1X Close Construction Loans are primarily what you hear about today when you start to discuss construction financing. So what is a 1X Close, and how is it different than a 2X Close? What are the pros and cons?

The 2X Close: Traditionally a construction loan has been a stand alone loan that is not the 30 year mortgage with principal and interest payments that we are all familiar with. The 2X Close Construction Loan is just the loan for the construction. When the home is done, and the Certificate of Occupancy (C of O) is received, the owner must get a refinance loan to pay off the construction loan. This is the 2nd loan in the process, thus the 2X Close. The refinance would then be the 30 year fixed mortgage (or ARM, or whatever product the owner

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