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.
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!
- 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.