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What is a One Time Close (OTC) Home Construction Loan?

A One-Time Close (OTC) Home Construction Loan enables borrowers to obtain financing for land, construction, and permanent long-term financing all in one transaction. There are four options available for this type of loan:

(A) Conventional OTC Loan
(B) VA OTC Loan
(C) FHA OTC Loan
(D) USDA OTC Loan

Home Construction Loan Quick Facts

Projected rental income on current residence CANNOT be used for qualifying purposes.
Tear down and rebuilds ALLOWED (including removal and replacement of existing manufactured home).
Land value cannot exceed 38% of the total new home appraised value.
Self-Builds, Self-Help, Sweat Equity not permitted.
Only one fixed price turn key contract between one Builder/Dealer and Borrower allowed.
Construction Contract MUST match the most recently approved GSF Cost Calculation Worksheet.
Requires proof of land ownership or executed land purchase contract.
Requires Evidence of General Liability Insurance with minimum coverage amount of $1,000,000 per occurrence.
Build term is up to 12 months. Exceptions vary.

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Check Out Other Loan Options

CONVENTIONAL

A Mortgage for those at or above a 620 FICO score.

VA

A Mortgage only for US Veterans and their spouses.

FHA

A Mortgage that helps buyers with challenges to gain and maintain homeownership.

JUMBO

Any Mortagage that is larger than a conventional Mortgage Limit.

USDA

A Mortgage that helps rural residents gain and maintain homeownership.

Foreign National

A Mortgage for Non US Citizens who hold a qualifying US Visa.

CONSTRUCTION

A Mortgage used to build a new property.

RENOVATION

A Mortgage used to renovate a property.

ITIN MORTGAGE

A Mortgage for those who do not hold a Legal Status.

COMMERCIAL

A Mortgage for property that is used for business purposes.