(713) 528-1245

Construction Loans

Main Street Mortgage Company offers a variety of construction financing options for you to build your new home.

Construction financing in Houston, Texas and its surrounding counties.

We are pleased to offer Stand Alone Construction Loans and One Time Close Construction-Permanent Loans to our clients.

One Time Close Construction - Permanent Loans (OTC)

  • Combines both the Construction Loan and the permanent mortgage into one loan with one loan application and one loan closing.
  • During the construction phase, funds are disbursed in draws in accordance with the progress of the construction.  The borrower makes interest only payments each month based upon the outstanding balance of the loan at the time.
  • Upon comletion of the home, the loan modifies into the permanent mortgage where the borrower makes monthly payments of principal and interest.
  • The construction rate and the permanent rate are set up front at the time of the initial loan closing
  • Fewer options for the permanent mortgage terms.
  • One loan closing. Does not require a refinance transaction.  Saves time, effort and expense

Stand Alone Construction Loan

  • Provides short term financing (9-12 months) to buld the home
  • Funds are disbursed in draws in accordance with the progress of the construction.  The borrower makes interest only payments each month base upon the outstanding balance of the loan at the time.
  • Upon completion of the home, Main Street Mortgage can arrange a long term permanent mortgage by refinancing the construction loan into the permanent mortgage of the borrower's choice.
  • Often called a Two-Time Close transaction
  • Lower closing costs up front but contains interest rate risk for the permanent mortgage.
  • More options for the permanent mortgage.