.png)
Construction Loans
"Testimonials are a great way to showcase positive feedback from others I'm a paragraph. Click here to add your own text and edit me. It's easy.I'm a paragraph. Click here to add your own text and edit me. It's easy."
Timberly Williams
Purchase the land, pay for your home construction, and secure your mortgage in one single loan.
What is a One-Time Close Construction Loan?
A loan designed to finance the costs of building your own home, such as:
-
Materials
-
Labor
-
Land
-
Onsite utilities, etc.
A One-Time Close Construction Loan combines a traditional construction loan and a mortgage into one loan. This means that you only apply once to be approved and only pay one set of closing costs.
One-Time Close (OTC) Benefits
-
Simplified application process
-
Interest-only payments
-
Lock-in a fixed interest rate
-
Potentially lower closing costs
-
Low down payment options
You have the option to use our 12-month Extended Rate Lock and Float Down. This means you can lock in your loan rate up front and float down to the current interest rate within 30 days of your home being completed to benefit from lower current market rates (if applicable).
What are OTC Loan Requirements?
The requirements for One-Time Close loan will depend on which type of loan you qualify for.
Some of these requirements may include:
-
Credit score
-
Down payment
-
Mortgage Insurance (MI)
-
Proof of steady and consistent income for a minimum of two years
-
Property requirements
-
Home plans and specifications,
appraisals, and home inspections
Types of OTC Loans
Conventional
-
As little as 5% down payment
-
Minimum credit score of 680
-
10-30 year fixed-rate mortgage
-
Owner-occupied or second home
-
Single-family, modular, prefab,
manufactured homes, and
auxiliary-dwelling units allowed (ADU)
VA
-
As little as NO down payment
-
Minimum credit score of 620
-
10-30 year fixed-rate mortgage
-
Owner-occupied only
-
Single-family, modular, prefab,
manufactured homes, and
auxiliary-dwelling units allowed (ADU)
FHA
-
As little as 3.5% down payment
-
Minimum credit score of 620
-
10-30 year fixed-rate mortgage
-
Owner-occupied only
-
Single-family, modular, prefab,
manufactured homes, and
auxiliary-dwelling units allowed (ADU)
How OTC Loans Work
While One-Time Close Construction loans are a little more complex process than many other home loans, there are also lots of steps that are common, including:
-
Choose a builder
-
Draft the contract
-
Prepare required plans and
specifications for home -
Begin the loan process
-
Close the loan
-
Begin construction