One-Time Close

One closing. Multiple advantages.

What’s a One-Time Close loan?

As its name implies 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 process for new home buyers, our One-Time Close offerings include FHA, VA, USDA, and Conventional financing.

Faster turnaround times, low construction admin fees, and the ability to apply various down payment assistance programs are just a few of the ways AFR has applied our expertise to One-Time Close lending. 


One-Time Close financing is available for FHA, VA, USDA and Conventional loans  making it accessible to more eligible borrowers. Thanks to One-Time Close, a buyer’s first home could be a brand new one!

Maximum LTVs:

  • FHA: 96.5%
  • VA: 100% not including VA funding fee
  • USDA: 100% of market value 
  • Conventional: Up to 97% when combined with Home Possible® or HomeOne®

A smart option for brokers, correspondents, builders, retailers, and MH dealers

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

To further help brokers, correspondents, builders, and MH dealers, AFR Wholesale provides personalized concierge service to guide originators and their builder/dealer partners throughout the One-Time Close process.

Some restrictions and limitations apply. See program guidelines for details.