Construction
One-Time Close
Lending

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. 

FHA, VA, USDA, and CONVENTIONAL HIGHLIGHTS

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