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Single-Close Construction Loan

From groundbreaking to move-in—one easy process.

Call to Apply 1-800-561-9433

Single-Close Construction Loan

One closing, one loan.

HOW THE LOAN WORKS

  • You provide information on your planned home, including materials to be used and total cost to complete the project
  • Funds are disbursed to the builder at various stages of construction
  • During construction, you pay monthly interest-only payments based on what funds have been given to the builder
  • Once the house is finished, the loan automatically switches to permanent financing with the same interest rate
  • Call to apply 1-800-561-9433 

MAY BE A GOOD CHOICE IF

  • You want one loan that covers new home construction and then converts to a standard mortgage

KEY FEATURES

  • One closing before construction starts—no need to close again when the home is finished
  • Down payment as low as 10% of purchase price (lot equity may be credited toward your down payment)Covers purchase amount up to $1 million
  • No Private Mortgage insurance (PMI) required
  • You pay only the interest during construction
  • 12-month construction term with 90% Loan to Value (LTV) up to $750,000, and 85% LTV up to $1,000,000
  • Only available in Indiana and with owner-occupied builds
  • Low fees and closing costs

Call for Rates 1-800-561-9433

 

Maximum Loan Amount of $1,000,000. All loans subject to credit approval and appraisal. Rates and terms subject to change. This is not an offer to extend credit as defined by Section 1026.2 of Regulation Z.

So, what exactly is a Single-Close Construction Loan?

This loan is used for when you’re building a new home and acts as two loans in one: your construction loan plus your mortgage once the house is finished. It’s nice because during construction, your builder is paid as bills are submitted and you pay interest only on what funds that have been used so far. Once construction is complete, the loan automatically switches over to your permanent financing at the same interest rate.

One big advantage of using this approach is that you pay closing costs just once. If you did a separate construction loan and then a mortgage, you would have closing costs both times. You need just 10% down, and if you already have equity in your lot that can be credited toward the down payment.

You will have one-on-one personal guidance throughout the process, including being available to answer your builder/contractor’s questions along the way to keep the process moving smoothly.

Call to Apply

How does a Single-Close Construction Loan compare to other loan/mortgage options?

The single-close construction loan lets you finance your construction and then turns into your mortgage. Another option is to get a land loan to cover the purchase of a residential lot which you would combine with a conventional mortgage.

  Single-Close Construction Loan Land Loan Fixed-Rate Mortgage Adjustable Rate Mortgage
Key Benefits

One closing, one loan1

Keeps your land and home loans separate

Predictable payments

No interest-rate surprises

Lowest short-term rates

Initial lower monthly payments

A Good Option If You

Want one loan that covers new home construction and then converts to standard mortgage

Are buying a lot for a future home

Want your rate and payments to stay same for life of loan

Plan to stay in your home for several years

Are comfortable with rate and payments fixed at first, then adjusting later

Don't plan to stay in the home long

Available Loan Terms

12-month construction term

1 year maximum

5, 7, 10, 15, 20, and 30 years

3/1, 5/1, 7/1, 10/1 ARM

5/5 30-years

5/5 15-years

Interest Rate As Low As Contact Us for Options Contact Us for Options 2.625% 2.875%
APR As Low As Contact Us for Options Contact Us for Options 2.769%2 2.705%3
No Points
No Mortgage Insurance (PMI)
Down Payment 10% of purchase price 20% or more of lot value As low as 20% of purchase price As low as 10% of purchase price
Loan Limits

Up to $1 million

Special Feature

 

What fees and closing costs should I expect?

The specific amount of your closing costs will vary. A home loan often involves many fees, such as the appraisal fee, title charges, closing fees, and state or local taxes. These fees vary from state to state and also from lender to lender. Your Elements Mortgage Loan Originator will review all costs with you based on your specific loan amount, purchase price, and home value.

Third Party Fees

Third party fees are ones that we collect and pass on to the person who actually performed the service.These can include the appraisal fee, the credit report fee, the settlement or closing fee, the survey fee, tax service fees, title insurance fees, flood certification fees, and courier/mailing fees. For example, an appraiser is paid the appraisal fee, a credit bureau is paid the credit report fee, and a title company or an attorney is paid the title insurance fees. 

Taxes and Other Unavoidable Costs

These fees include state/local taxes and recording fees and will most likely have to be paid regardless of the lender you choose. If some lenders don't quote you fees that include taxes and other unavoidable fees, don't assume you won't have to pay it. It is possible that a lender who doesn't tell you about the fee hasn't done the research necessary to provide accurate closing costs. 

Lender Fees

Lender fees such as points, document-preparation fees, and loan-processing fees are retained by the lender and are used to provide you with the lowest rates possible. This is the category of fees that you should compare very closely from lender to lender before making a decision. Elements charges a standard $900 origination fee on all mortgages.

For more information, call us at 1-800-561-9433.

Should I get preapproved?

Call us at 1-800-561-9433 to see if you can be preapproved for a loan so that you know what price range you can afford, to evaluate the monthly costs of a mortgage, and to see how much of a loan you can afford. The preapproval will also give you some leverage when negotiating with the builders.

Call to Get Preapproved 1-800-561-9433

Does Elements have a special program for first-time homebuyers?

Yes! Our First-Time Homebuyer Program allows you to purchase a new home with as little as 5% down with no Private Mortgage Insurance (PMI). The loans can be up to $325,000, and it’s okay if your down payment was gifted to you. We will also be there to give you guidance at each step through the process.

We also have other programs that are available with even lower down payment terms such as FHA, VA, and USDA loans. For more information, call us at 1-800-561-9433.

What happens during the mortgage application process?

Getting Started

You can apply online in 15-20 minutes! Submit your application anytime. Or call us at 1-800-561-9433 to apply by phone. When you apply, have ready your government-issued ID (driver’s license, state ID, or passport) and estimates of your household income, assets, home value and price you paid for your home. 

Gathering Documentation

We’ll contact you within one business day after you submit your application to review documentation that we'll need from you. We’ll also answer any questions you may have. 

Application Review & Approval 

Once you have supplied your documents, your loan will be reviewed by an underwriter. After the underwriter review, your Elements Mortgage Loan Originator and Loan Processor will work together to obtain any further documentation that is needed to close your loan, including the title work and an appraisal based on your plans, specifications, and value of your lot/land.

Closing

Once your loan has received final approval, your closing will be scheduled at a location convenient for you. That's it — your mortgage is complete! Application to closing takes an average of 45 days

Call to Get Started 1-800-561-9433

Why should I go to Elements for my mortgage?

Like a Bank, Only Better!

Personal Mortgage Guidance

Buying a home can be a bit overwhelming. But don’t worry. We’ll be with you every step of the way to guide you through the mortgage process, from pre-approval all the way to closing. You’ll have your personal mortgage expert’s cell phone number, so you can get all your questions answered very quickly. 

Better Rates. Fewer Fees.

Because we’re a credit union, we return profits to members in the form of reduced fees, higher savings rates and lower loan rates.

Trusted Advice. Fresh Approach.

We pride ourselves in being a trusted source for financial education. We come to your workplace to answer questions and can provide you with a dedicated Mortgage Loan Originator4 to guide you through the entire mortgage process.

Respected Locally. Accessed Globally.

Headquartered in Indianapolis since 1930, we rank among the top 3% of credit unions nationally5. We serve members in all 50 states and 50+ countries. You’ll have access to 5,000+ shared branches nationwide and 78,000+ surcharge-free ATMs globally.

High Tech. Human Touch.

Our technology makes banking with Elements easy. From quick digital applications to online and mobile banking, we’ll be by your side wherever you go. We’re here for you with member service available 24/7 and live chat during the workday.

Call to Get Started 1-800-561-9433

How do I apply?

3 Easy Steps to Apply

  1. Call 1-800-561-9433 to apply - Call us whenever you have 15-20 minutes to spare to get started.
  2. Take our call - We'll contact you within one business day after you submit your application to go over what documentation we'll need and to answer your questions.
  3. Schedule your closing - We'll stay in touch with you throughout the mortgage process. Then, if you're approved, we'll schedule your closing at a location convenient for you.

Call to Apply 1-800-561-9433 Call to Get Preapproved 1-800-561-9433

How is my mortgage payment calculated?

Your monthly mortgage payment is made up of four components: principal, interest, property taxes, and homeowner’s insurance (referred to as "PITI"). 

Principal and Interest

Principal and interest are based on the loan amount, interest rate, and term (amortization) of your loan. 

Property Taxes

Property taxes are assessed annually. The amount of your taxes is divided by 12 months in order to determine how much will be collected from you as part of your monthly payment.

Insurance

Homeowner’s Insurance is also paid annually. The amount of your annual premium is divided by 12 months as well. 

Private Mortgage Insurance (PMI) can also be a component of your monthly mortgage payment. This is insurance that the lender obtains to protect them against any loss if you stop making payments on your loan. PMI is typically required on Conventional loans if you do not put at least 20% down on a purchase or have 20% or more equity in your property on a refinance.

  1. 1 Single-Close Construction Loan Details: Maximum Loan Amount of $1,000,000. All loans subject to credit approval and appraisal. Rates and terms subject to change. This is not an offer to extend credit as defined by Section 1026.2 of Regulation Z.
  2. 2 Fixed Rates effective as of December 2, 2020. Note that the interest rates and annual percentage rates (APRs) shown here are available to borrowers with credit scores 740 or greater and 60% Loan-to-Value (LTV) and are based on loans secured by property in the state of Indiana. The actual interest rates and APRs available to you may vary based on your credit score, LTV ratio and other factors, and may be higher than those displayed here. Rates, closing costs and points may vary by property location, loan type and borrower credit and income characteristics. ALL FINANCING SUBJECT TO CREDIT APPROVAL. Example Monthly Payments based on a purchase price of $250,000, FICO® score of 740 or greater, 40% or more down payment, and loan amount of $150,000; they do not include amounts for taxes and insurance premiums, if applicable, and the actual payment obligation may be higher. Rates are subject to change without notice. Some restrictions may apply. Please call for rate information about mortgage products with terms other than those listed.
  3. 3 Adjustable Rates effective as of December 2, 2020. Note that the interest rates and annual percentage rates (APRs) shown here are available to borrowers with credit scores 740 or greater and 60% Loan-to-Value (LTV) and are based on loans secured by property in the state of Indiana. The actual interest rates and APRs available to you may vary based on your credit score, LTV ratio and other factors, and may be higher than those displayed here. Rates, closing costs and points may vary by property location, loan type and borrower credit and income characteristics. ALL FINANCING SUBJECT TO CREDIT APPROVAL. Example Monthly Payments based on a purchase price of $250,000, FICO® score of 740 or greater, 40% or more down payment, and loan amount of $150,000; they do not include amounts for taxes and insurance premiums, if applicable, and the actual payment obligation may be higher. Rates are subject to change without notice. Some restrictions may apply. Please call for rate information about ARM products with terms other than those listed.
  4. 4 Nationwide Mortgage Licensing System Registrants: Nationwide Mortgage Licensing System Registrants: Elements Financial FCU 410639, Shawn Adams 1969445, Charles Akinbola 1811812, Barbara L Allen 609733, Luis Aparicio 144043, Lindsey Badanek 724103, Cynthia Bell 427359, Nyla Bivens 1128100, Cassandra Bogaards 894545, Jamie Bonner 435395, Laura Bordenkecher 1590841, April Bratton 1169913, Dawn Michelle Bruce 899516, Julie Bowering 443400, Tracee Buckrop 609727, Karla Chevrie 404630, Eliza Claborn 1826115, Christine Clark 609734, Mary Ann Deckard 1259646, Heather Derbyshire 483140, Ashlie M Dew 539208, Curtis Neal Dodd 200259, Ron E Ellis Jr 1207645, Barbara Fey 489638, Kara Michelle Fischer 1469113, Tami Renee Forsythe 609730, Lenore Gallagher 975065, Sherry Gaw 988244, Emilee Goode 1776621, Robert Goodwin 975067, Quentin Girten 1919653, Abigail Hall 1469114, Mariah Hestand 1809685, Dial Holliday 1436039, Jennifer Hooker 1807696, Theresa Iaria 1128103, Kasey Jones 1942020, Christoper Kerr 143199, Andee Kettlebar 443776, Jill Kidwell 609731, Michele King 1759144, Sara Keedy 1512646, Sean Kiely 425511, Tara Nicole Lambert 883082, Teresa Ledford 444283, Cindy Leisure 1080329, Rebecca Littell 996455, Kristy Mars 609725, Beverly Marshall 444941, Stacey McDaniel 1157444, Alexander J Menestrina 1190426, Beth Moberg 473454, Justin D Montour 1198316, Brooke Moss 1824059, Terri Mossbrucker 1385461, Kristina Mowery 916118, Amber D Murphy 1082684, Mallory Neill 1750269, Constance Nelson 975071, Micha Noble 1950136, Grace Nolan 1840818, Regina Norman 1080327, Shaneka A Pedersen 426201, Meghan Pedigo 1601304, Janene Petree 1529353, Kyle Thomas Plumlee 1930758, Kim Purkhiser 1313210, Tania Query 608383, Rebecca Rice 1007612, Miranda Grace Renee Rizzo 1198315, Janai S Roberts 252636, Susan Roberts 975068, Carol Biale-Schroeder 1863399, Ryan Sebree 1866273, Ron Senci 1068152, Brad Smith 906855, Amy Lynn Stokes 1387213, Brent Tedford 1892880, Bradley Thompson 609732, Samantha White 1849420
  5. 5 Based on asset size as of 1/31/2020