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Construction Loans Made Easy – One Time Close

Build Your Dream Home With One Construction Loan

The FHA (Federal Housing Administration),  One-Time Close (OTC) lending product is a loan that enables borrowers to both combine financing for the purchase of a lot, the construction and ultimately the long term permanent mortgage into a single first mortgage loan. This loan is suited for those borrowers who are purchasing new construction, the FHA OTC loan provides the benefits of low money down financing, competitive interest rates and on top of all that just one closing for all financing.

    FHA One Time Close construction to Perm!


    The FHA One-Time Close Loan is a secure, government-backed mortgage program available for one-unit, stick-built primary residences, new manufactured housing for primary residences (excludes single wide mobile homes), and modular homes.

    It allows borrowers to finance for the construction, lot purchase (if necessary), and permanent loan into a single mortgage. It provides for a single all-at-once closing with a minimum down payment of 3.5 percent (up to your FHA county lending limit).

    fha one time close construction loan

    The One-Time Close Loan gives home buyers a new home buying option — that’ right a single loan with one single closing date, and a specific set of parameters for how the loan is to move forward  during the construction component and into the final loan.

    Most construction home loans require two separate closings—the first to qualify for the construction itself, and secondly when finished and converting your construction loan into a permanent mortgage. The One-Time FHA Close, gives home buyers a new option.

    How many potential borrowers are aware that they have the ability to build their dream home as a part of one, consolidated mortgage loan. The FHA provides a One-Time Closing that offers Homebuyers the ideal loan for home construction with the best rates and leverage available today. 

    The FHA qualifications for construction  loans can also take advantage of the FHA’s easy qualifications, such as easier restrictions on credit qualifying for scores, easier flexibility for homebuyers’ work histories, smaller escrow reserve requirements, and lower debt-to-income ratios. Apply Now

    Expert Mortgage Information.. Home Buyers Blog

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