I know this will vary by lender and probably by location, but if anyone has recently closed on a one-time close construction to perm loan (Western NC region specifically), I'd love to know what your fees and closing costs totaled. Looking for as much detail as anyone is willing to provide - ideally something akin to 0.50% origination fee, $5K for draws/inspections, $3K for abc item, etc.
Current (July 2024) one-time close construction to perm loan fees
Roughly 2.2% of the loan amount was closing fees. Is my math directionally right?
Yeah, they never broke it down as a percentage just shows the amount on all of our disclosures.
Before going into it we heard you need 20-40% down for construction but that hasn’t been the case at all with our lender. All said and done we have about 10-11% down
Northeast US
I’d have to pull out our papers to see the break down. We didn’t put anything down, we had to prove we had 30% (20% ‘downpayment’ and 10% to cover overage) but we didn’t give it to anyone. It stayed in our account)
3.5% interest (we made our application just before interest started to climb)
800K loan and closing costs 17,800.
So slightly over 2% of the loan amount was allocated to various fees - am I reading that correctly.
Where any of those “prepayments” - I would want to back those out since I’m account for those in a separate budget line. Prepayments = first year insurance or some level of property tax (as the two primary examples)
I stand corrected. Not sure where I got 17,800. Actually only a bit over 10k
Breakdown for 800k loan
processing fee 799.
appraisal fee 575.
Tax service fee 180.
credit report 105.
Municipal lien to town 50.
Insurance tracking 80.
Recording fees 205.
per diem interest 86.
4 months of property tax 9,000
Awesome - thanks. Most of that was tax driven then.
Any inspection / draw fees during the construction period. The other items looks pretty standard for a conventional loan closing.
Yes, each inspection (we had 5 of them) was about 250.
But those were paid at each draw / inspection vs paying at closing?
Oh yea, they wouldn’t come out to inspect w/out us paying first.
I’m not in your area, in northern US. We closed on the construction loan last week. Nothing will be due other than title and lender fees at perm closing because of our land equity and we put 40k down on the house direct to builder. 416k construction loan to pay off the land and rest of the house.
Building privately in a rural area, not with a subdivision.
$100 Courier fee $8k Loan origination fee $1700 in service fees (title insurance etc)
Total closing costs $10.5k
Interest rate 8.2% Interest only payments $1,400 during life of loan, will go as high as $2,900 when all funds have been used, and we have 11 months to perm close. Interest rate will be significantly lower on perm loan, they’re just higher for construction.
ETA, inspections, permits, other fees were all included in the loan so we didn’t pay any of that up front.
We paid for the appraisal up front and thats it.