What is a One Time Close Loan?

A One Time Close loan is designed specifically for financing the construction of a residential property. Construction home loans require detailed plans and architectural drawings, as well as a licensed builder to oversee the project. The loan terms, including interest rates and all costs are known up-front because the loan closes first. And then the building begins.

For construction loans, we only offer One-Time-Close (OTC) loans. Down payments for these loans range from $0 to 5%! We offer this product with FHA, VA or Conventional loans. Each loan program has different requirements for down payment, interest rate, as well as if payments are made during construction, etc. 

Benefits of One-Time-Close Loans

One-Time-Close loans offer several benefits to borrowers embarking on the journey of building their dream home. One of the key advantages is the option to seamlessly move from construction to permanent financing with one loan package. This eliminates the hassle of undergoing a separate application process for permanent mortgage financing, saving borrowers time and effort. Also, you don’t need to re-qualify once the home is complete. You just move in.

Furthermore, OTC loans provide the opportunity to lock in the loan with fixed-rate financing at the start of the loan. This means that borrowers can enjoy the stability of knowing their interest rate will remain the same throughout the construction phase, and when the home is complete.

You have the flexibility of 4 to 11 months to complete the project. Construction projects can be complex and unpredictable, and having the freedom to take the necessary time to ensure the construction is done to the highest standards is invaluable.