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

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. 

*NEW* OTC Freedom Draw Schedule
This One-Time Close option provides an opportunity for you to work with even more home Retailers. Among the benefits of OTC Freedom, retailers can stretch their cash flow further because they receive 10% of the cost to construct upfront.


FHA, VA, USDA, and NOW Conventional!

One-Time Close 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: 90%, or up to 97% when an eligible CHOICEHomeSM property is combined with the HomePossible® or HomeOne program(s)


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

Find out more about the opportunities OTC may provide to you in One-time Close Construction-to-Permanent: The Program, The Myths, And how to become a legend.

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.

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