Articles, Updates, and Guidelines
The One-Time Close Construction-to-Permanent Loan is a secure, government-backed mortgage program available for one-unit stick-built primary residences, new manufactured housing for primary residences (no singlewides), and modular homes. Our articles and updates are presented to keep you informed on loan guidelines, program changes, and topics to help you build and get financing for your own home.
February 20, 2025Imagine you’re building a house. Traditionally, you'd get one loan for the construction, then another to buy the finished house. An One-Time Close construction loan (also known as an OTC mortgage) simplifies this. It's a single loan that covers both the construction and the final mortgage. You close just once, hence the name. Government programs like FHA, VA, and USDA offer these options to qualified applicants.
January 23, 2025Saving for a down payment is a big challenge in building a home. It may seem daunting until you learn about the factors affecting how long it takes to save and the strategies you should consider to reach your goal faster. In addition, there is the need to save for closing costs, and it becomes clear that a detailed plan may be needed to get you into your new dream home. How long will you save the money for your home loan costs, including downpayment? Much depends on your personal circumstances.
January 16, 2025Ever dream of building your own home, customized to your exact tastes and needs? Navigating the world of construction loans can be daunting at first. Some people find themselves juggling a short-term loan for the building phase and scrambling to secure a separate mortgage once the house is complete. But there is a more straightforward way: the single-close construction loan.
December 12, 2024There are multiple options for those who want a construction loan to build on their own land. Those who do not own land may purchase property in conjunction with the mortgage, and they can choose between several options to finance the purchase and construction.
November 12, 2024One-Time Close Loans allow for FHA (3.5% down) or VA ($0 down) to finance both the construction and lot purchase, which includes the permanent loan - all in one mortgage. With more competition and less home available on the market, it may be time to start planning the construction of your own home.
November 9, 2024Many financial pundits and mortgage blogs discuss the current state of construction loan interest rates. Some of these sites make predictions, including noting that One-Time Close construction loan interest rates will likely stay around the mid-6 % range for the rest of 2024. Those hoping to build a home from the ground up this year with interest rates closer to pre-pandemic levels are likely to be disappointed. What should borrowers expect going forward? Is it smart to delay a construction loan until the Fed cuts rates again?
Do you know what's on your credit report?
Learn what your score means.
