How do payments work for a construction loan?

When you open a construction loan, you are only required to pay interest-only payments during the construction period of the loan, which is usually 12 months. The interest-only payment amount will be based on the amount disbursed. Following the construction period, the loan will be rolled into a conventional mortgage where your payments will be calculated traditionally as principal and interest.

How do I get a loan to build a home on my land?

OneAZ offers construction loans to borrowers who own land or already have a lot loan. There are certain restrictions on the types of housing that can be supported by a construction loan, such as single family homes and Planned Unit Developments. In order to obtain a construction loan, you will need at least a 20% down payment and your credit score and qualifications will be checked. The best way to get started is to apply now and connect with a OneAZ mortgage loan officer to get more information.

What is the difference between a home loan and a construction loan?

When you fund a one-time close construction loan with OneAZ, the construction period of your loan is generally 12 months where you pay interest-only payments. Then your construction loan is rolled into a conventional mortgage where you pay traditional principal and interest payments for the remainder of the loan. This mostly differs from a traditional mortgage due to the construction period and interest-only payments. With a one-time close construction loan, you still get to lock-in your interest rate from the start.