What’s a Conventional One-Time Close Loan?
As its name implies, a Conventional One-Time Close (OTC) is a Construction-to-Permanent loan program that offers all-in-one financing. Available for manufactured, modular, and stick-built homes, OTC loans allow borrowers to finance the construction of a home, lot purchase/land payoff, and permanent mortgage with just one closing.
Designed to simplify the financing process for new home buyers, our One-Time Close Construction Loan Program offering includes Conventional, FHA, VA, and USDA programs.
Conventional One-time Close Construction Loan Basics
– Conventional: 90%, or up to 97% when an eligible CHOICEHomeSM property is combined with the HomePossible® or HomeOne program(s)
– Provides construction financing, lot purchase, and permanent loan
– Single closing reduces closing costs and paperwork
– Permanent portion of the loan approved before construction begins
– Construction portion also underwritten and approved
– No payments due during construction
– No re-qualification once construction is complete
– Interest rate protected during construction
– 15 year and 30 year fixed term options
– 700 minimum FICO qualifying credit score
– One unit stick-built house, new manufactured, multi-wide housing, modular homes
– Primary residence only
The single-closing program means one appraisal, one set of closing costs, one underwriting and qualifying process, which eliminates the time and expense of a second closing.
One-Time Close simplifies the construction loan process, which benefits all parties involved. Some of the advantages to an OTC loan include:
– Options to have no payments due from borrower during construction
– Generally no re-qualification once the borrower is approved and no property value recertification required (FHA, VA, and USDA)
– Single close reduces total closing costs
– Mortgage broker commission / mortgage correspondent purchase advice paid in full at closing (prior to construction commencing)
– Realtor commissions generally paid in full at closing (prior to construction commencing)
– Single construction administration fee which includes: construction interest, construction draw inspections, construction closing coordination, construction underwriting, and title updates
Conventional One-Time Close Loan Process
Here’s how our home loan process works:
– Complete our simple Conventional One-Time Close Loan Qualifier
– Receive options based on your unique criteria and scenario
– Compare mortgage interest rates and terms
– Choose the mortgage loan offer that best fits your needs
– Let us connect you with an Elite Realtor to start the process towards building your perfect home