One Time Close (OTC) Loans

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One time close (OTC) loans are a great financing option for those looking to build a home. This type of loan simplifies the process by combining the construction loan and permanent mortgage into a single loan. It eliminates the need for two separate closings, saving time and money. Additionally, one time close loans usually offer more competitive rates and terms than a traditional two step loan. The loan process is easier and is less stressful, making it a great choice for those looking to build a new home.

As a combined construction and permanent loan, the OTC can save you time, money, and aggravation because:

• You only need to qualify for the loan once, pay loan fees and closing costs only once, and sign loan closing documents only once.
• Your loan amount will be based on the total cost of your project, including land, construction, closing, and interest costs. This structure helps to increase the potential maximum loan amount.
• The OTC loan amount includes a reserve for your monthly interest payments, giving you peace of mind that your payments will be met. You also won't have to make two housing payments while your new home is under construction, saving you much-needed cash flow.

• The OTC loan amount also includes a 5% contingency reserve in case you run into unforeseen cost overruns. This reserve can also protect your cash flow during construction.
• Protection against interest rate increases during construction.
• You have up to 12 months to complete the construction of the home.
• Permanent financing has competitive rate for 15-year, 30-year or 3/1 Treasury ARM products.
• The owner's down payment can be as low as 5% for a primary residence (95% LTV).