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.
May 21, 2025A One-Time Close (OTC) residential construction loan is a specialized financing product that combines the financing for a new home's construction phase and the permanent mortgage into a single loan with just one closing. Unlike other methods that require separate loans for building and then for long-term ownership, the OTC loan streamlines the entire process, offering a simplified and often more cost-effective approach to building a custom home than two-close construction loans.
April 29, 2025If you know about regular FHA loans for buying existing homes, the FHA OTC loan for building shares many similarities, but with some key construction-specific twists. FHA One-Time Close mortgages are backed by the Federal Housing Administration. This government insurance protects lenders if a borrower can't pay, allowing lenders to offer loans with easier qualification rules. This makes it a good option for first-time buyers or those who might find conventional loans harder to get.
April 16, 2025There are two popular ways to finance new home construction using a single loan: the FHA One-Time Close (OTC) loan and a similar Conventional single-close loan. What’s a single-close mortgage? Think of it as an "all-in-one" loan for building a house. Instead of getting one loan for the construction phase and then another separate mortgage loan once the home is finished, a single-close loan combines everything into one package. It covers land, materials, labor, permits, and builder fees.
March 26, 2025If you compare your home loan options and want to consider building or renovating instead of buying someone else's home, you have several options. Some want to renovate an existing property. Others want to build from the ground up. Which option is right for you?
March 1, 2025Building a custom home with a one-time close loan requires planning. To avoid disappointment in the construction loan process, here's some advice you should review before starting your One-Time Close construction loan application. The single close construction loan process requires some essential steps to avoid disappointment with the finished home.
February 27, 2025One-Time Close (OTC) construction loans offer the borrower the ability to combine construction financing with your mortgage loan. This streamlines the process and making it easier to apply for. However, this convenience comes with the responsibility of being ready for a more complex financial journey. Unlike buying an existing home where you primarily need a down payment and closing costs, building involves ongoing expenses and potential surprises. What should you be thinking about as a first-time home buyer interested in building a home from the ground up?
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