A loan option that lets you build your dream home and purchase the land, all with just one loan process! Consider a One-time Close Construction Loan with AmeriFirst. This construction loan is a 30-year, fixed rate, USDA Rural Development (RD) construction to permanent mortgage. Down payment as low as 0%

One Application. One Closing. One Loan.

This loan first finances the cost of the construction as a short-term interim loan. Once work is complete, it converts to a traditional 30-year, long-term permanent mortgage.

Unlike other new home construction lending, this is a one-time close loan. That means buyers don’t have to worry about qualifying for the construction loan, then re-qualifying for the traditional mortgage. Other benefits include:

  • The construction loan is made directly to you
  • The lot can be purchased at closing, or you can build on land you already own
  • Construction can begin as soon as the loan closes
  • Down payment as little as 0%
  • Eliminates worries of another loan qualification, concerns over a new appraisal, and dual fees associated with the second loan
  • Nine-month construction period starts within 30 days of closing
  • Build your dream home!

How much can I borrow?

Depending on how much you qualify to borrow and with a down payment as little as 0%, the maximum mortgage amount is up to 100% of the appraised value.

If you already own the land, any equity you have in the property can be used toward cash to close requirements. However, land equity cannot be withdrawn as cash.

What do I pay?

The beginning principal balance of your loan will be the full amount that you were approved for at closing. The monthly payment includes principal, interest, and escrow (for insurance, property taxes, and the RD guarantee fee). In some cases, a Mortgage Payment Reserve Account will be setup to make some, or all, of your mortgage payments during the construction phase.

Sounds good! How do I get started?

Work with your loan originator to begin the pre-qualification process — this is necessary to estimate how much you can afford to borrow. The loan approval is issued by an underwriter once they have fully reviewed all of your required documentation.

When you’re ready to submit a full application, contact your loan originator to put the wheels in motion. As with any construction loan, building plans and specs are necessary. Need a builder? We can also provide referrals.

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*Normal credit and underwriting guidelines apply. Down payment and terms shown are for informational purposes only and are not intended as an advertisement or commitment to lend. Please contact us for an exact quote and for more information on fees and terms. Not all borrowers will qualify. Geographical restrictions do apply.