The One-Close Versus Two-Close Staged Funding
Construction-To-Permanent Loan Process

Land/Home Financial has both single and two close construction-to-permanent loans for both modular and manufactured homes!! This provides our borrowers with the widest possible choice of options given their specific financial situation and needs. Contact your Land/Home Financial Loan Officer at 1-888-796-5263 or email us at sgooder@land-home.net for further details. The following general guidelines differentiate the two types of loans:

Single Close:

  • Interim construction financing at 9.99% to 12.00% on funds dispersed for 270-day Note terms with 1.5 - 2 points origination and nominal fees. An extension for a 12 month construction period is possible with additional costs.
  • Modification to Permanent Financing at the conclusion of the construction period.
  • Fannie Mae, Freddie Mac, FHA, and Non-conforming/'Niche" products available.
  • Site-built rates and programs for qualifying modular homes.
  • Our exclusive MH Residential Program allows HUD-Code homes to receive treatment as site-built homes (see program details).
  • MH rates for HUD-Code homes.
  • Minimum 5% down payment from borrower's own funds.

Two-Close:

  • Interim construction rates on funds dispersed are as low as 9.99%, with only 1.5 points origination and nominal fees for qualified borrowers.
  • 4 or 6 month construction phase options.
  • Interim construction rates modify to 1% per month (pro-rated) if construction period needs to be extended up to 12 months.
  • Permanent conforming Fannie Mae, Freddie Mac, FHA/VA and some Non-conforming/"Niche" loans are available at the conclusion of construction.
  • Permanent loan rates and points dependent on credit score, Loan to Value (LTV) and length of construction period.
  • Loan approval provided to the borrower covers both the construction and the permanent loans.

The following procedures are followed for the two types of loans:

  • For the one-close option, only one set of settlement documents and one set of closing costs apply. At settlement, the borrower will be signing all of the loan documents for both the construction and permanent mortgage loans. The loan will modify from a construction loan to a permanent mortgage when the home is completed, final inspection done, and a Certificate of Occupancy issued. The borrower will have a separate set of papers to sign at modification; reaffirming the terms of the original settlement and setting the permanent loan in place to begin making regular payments of principal and interest. The borrower will be required to sign an Acknowledgment of Modification Fees notifying them of what their estimated fees will be.
  • For the two-close option, separate sets of settlement documents and closing costs will apply to both the construction loan closing and the permanent (take-out) loan closing. The second closing sets the permanent loan in place to begin making regular payments of principal and interest.