I read the threads on construction loans, another rapid learning tool on BT as usual.  But, I didn’t find any detail on the pros/cons of one close vs two close construction loans aside from the extra cost associated with two closings.  So…

I will GC the project, and do certain parts of the project myself.  I am working with a mortgage broker on financing.  I have been told by the broker that we should get a two close loan (gee, that’s great for his piggy bank).  The reason provided by broker is that a two close loan is more flexible.  I should have asked in what manner is it more flexible, but my blood sugar was low.  Does anyone know how it is more flexible?

One final detail that may be important: The previous owner is carrying the loan on my present house, due to financing problems associated with my house being considered by lenders as recreational property.  My project will remove the recreational status and bring all living conditions up to standard lending criteria (I’ll finally have hot water and a shower among other comforts).  Following completion of the project, I will transfer all debt to a standard loan.

Thanks,

Rob