Loan Details
The True, One-Time Close (OTC) Construction Loan
Sometimes referred as a Single-Close Loan, One-Loan or Construction-to-Permanent Loan. Borrowers of a OTC Construction Loan can secure financing for the purchase of the land, the construction and the home’s permanent mortgage in a single closing.
FHA, VA, CONVENTIONAL, USDA & JUMBO CONSTRUCTION LOANS
Site-Built Homes, Single or Double-Wide Manufactured Homes & Modular Homes
Benefits of the One-Time Close (OTC) Construction Loan
✅Permanent Loan is closed one-time, upfront before construction begins
✅Saves money with only one appraisal and one set of closing costs
✅No re-qualification once construction is complete
✅Interest rate locked at closing minimizing risk of increasing interest rates
✅Interest-only payments during construction
✅On VA OTC Loans, no payments required during construction
✅Fast loan qualification and streamlined process
General Guidelines
- Available for FHA, VA, Conventional, USDA, and Jumbo Construction Loans.
- One, single-family residence per parcel of land.
- Eligible for: Site-built homes, single or double-wide manufactured homes, and modular homes.
- Owner-Occupied, primary residence only, except second homes allowed on Conventional OTC Loans.
- Fee simple land. Not available for homes on leased land.
- Land purchases can be included in the loan.
- Non-occupant co-signers allowed on FHA OTC Loans.
- Gift money and/or gift of land allowed from family members. This can be used towards the down payment and closing costs.
- Land equity can be used as credit towards the down payment and closing costs.
- 9 month build time.
| FHA | Conventional | VA | USDA | JUMBO | |
| Minimum FICO Credit Store | 620 | 620-720 | 640 | 640 | 720-760 |
| Down Payment Amount | As low as 3.5% | As low as 5% | 100% Financing | 100% Financing | As low as 15% |
States Where We Are Licensed
Arizona (AZ)
California (CA)
New Mexico (NM)
Oregon (OR)
Texas (TX)
Washington (WA)