The One-Time Close Construction-to-Permanent (OTC) loan is a product that allows borrowers to combine financing for home construction, lot purchase/land payoff, and the permanent mortgage into a single closing. Perfect for homebuyers purchasing new construction and Builders that can utilize our funding!
We are Providing these loans as FHA, USDA, VA and Conventional financing!
- Designed to simplify the financing process for homebuyers who want to build, eliminating the need to obtain both a construction loan and permanent mortgage
- As a Construction-to-Permanent loan, closing occurs before construction begins
- No payments due during the construction phase-exceptions could apply
- Closing costs may be financed on a USDA Loan
- 30-year fully amortizing fixed, 15 year on FHA and VA only
- No re-qualification required once construction is complete
- A single closing reduces closing costs, saving your borrowers time, money and paperwork
Here is an overview of the eligibility requirements for this loan program. View the Guidelines for the complete eligibility requirements.
- Minimum FICO of 640 on Conventional and USDA
- Minimum FICO of 620 on FHA and VA
- Up to 100% Maximum LTV on USDA and VA
- UP to 96.5% Maximum LTV on FHA
- Up tp 95% Maximum LTV on Conventional
- Borrower must have contracted with a builder (must be licensed general contractor)-NO Family relations
- Borrower must be purchasing the land at closing, or currently own their property
- Manufactured, site-built and modular homes with draws or no draws during construction
- Maximum of $250,000 initial disbursement at closing for land acquisition or payoff
- Modular and site-built with draws or no draws during construction
- Building permits (where required) must be obtained prior to closing
- Maximum loan amounts will vary by location
Features / Services
This loan program can be combined with one more of the following loan program features and process services. These features and services can be applied at the loan-level, providing flexibility to both the mortgage product and your process. Program Features may affect the eligibility requirements for this program, which can be seen on the guidelines above.
Loan Program Features
- Interim Construction Draws
The Interim Construction Draws feature that is applicable to OTC loan programs does not modify or alter the existing OTC program guidelines.
- No Draws
The No Draws feature that is applicable to OTC loan programs does not modify or alter the existing OTC program guidelines.
- Premier Builders & Retailers
Every One-Time Close Construction loan requires the selection of a Builder / Retailer to complete the project. We has established unique arrangements with an exclusive set of “Premier” Builders / Retailers, which allows us to offer additional flexibilities within our construction loan program guidelines.
Available for new manufactured, modular homes, and 1-unit stick-built homes, the OTC program provides interim financing and administration for construction-to-permanent loans. We provide underwriting and approval of the permanent portion of the loan before the construction begins. The construction portion of the loan is also underwritten and approved and when all conditions for closing are cleared, the closing will occur, and construction can begin. Because the permanent loan is closed before construction begins, there is no “re-qualifying” the borrower. In addition, borrowers will not need to return to the settlement agent for a second closing once construction is complete.
Let’s Put a Plan together , find your land and Build your Next Home!