When it comes to building or renovating a home, there are multiple options and not all lenders are created equal. Gateway offers financing that meets a myriad of needs, delivered by local, caring professionals who have a back office that knows the ins and outs of these types of loans. Are you looking to update an existing home’s features, increase the square footage or build from the ground up? Either way, our loans provide flexibility, easy closing options, and best-in-class personal service throughout the construction process—and beyond.
A One-Time Close loan (sometimes called a single-close loan) combines the construction loan with the permanent financing at the beginning of the home-building process. Once the initial loan is approved and funded, Gateway begins disbursing money (“draws”) for the construction phase of the loan. This allows your builder the ability to get your home built on-time and on-budget. The best part is you save time and costs associated with a second loan closing. Once the construction phase is complete, your loan will be converted to the final terms of your permanent financing without another formal loan closing.
Concerned about rising rates during the construction phase of your loan? Lock your rate—whenever you choose—with our Extended Lock Program! Lock periods are available for up to 360 days and there is a modest lock deposit that will be collected when you choose to lock your rate. Combined with our One-Time Close Construction loan, it’s a powerful way to ensure you can stay focused on the fun part—building your dream home.
If you are looking for an easy, flexible and convenient construction loan, ask your loan officer about the One-Time Close Loan!
Does your existing home need work? Are you considering a home that isn’t move-in ready? The Fannie Mae Homestyle or FHA 203 loans offer a wide range of benefits that may be right for you.
Homestyle Loan: Can cover a simple remodel project to an extensive renovation to increase comfort and add value. As a conventional mortgage loan, Homestyle loans go up to $453,100 and the terms are more generous than a traditional home equity or second mortgage whereby you may be able to borrow up to 95% of your home’s future value. Whether you are looking to update your home or get it “market-ready” to sell, the Fannie Mae Homestyle loan has a lot to offer.
FHA Renovation Loans: These government-backed, renovation loan programs allow you to purchase and renovate a new home with just one loan. It is also a viable option if you are looking to rehab or remodel your existing home as a refinancing option. FHA Renovation Loans offer flexible financing with down payments as low as 3.5% and qualifications that are accessible for a wide range of borrowers. Here is some more information on the most utilized versions of these loans:
Learn more about how renovation financing works here.
We encourage you to consider all the options and do what makes the most sense for you and your family. Please refer to the below chart for a quick reference on the construction and rehab loans discussed earlier.