Conventional One-Time Close Construction

Get Pre-Qualified Today & Shop with Confidence!

Conventional OTC Construction

Get Pre-Qualified Today
& Shop with Confidence!

Experience a Hassle-FREE
Mortgage Process!

Before you start looking for your first home, you should get pre-qualified with a licensed Mortgage Professional so you know your buying power. Choosing a purchase loan product that matches your goals and making sure you get the best rate for your given scenario can feel like playing whack-a-mole.

We’re here to make the home loan process a whole lot easier, with tools and expertise that will help guide you along the way, starting with a FREE pre-approval letter request. We’ll help you clearly see differences between loan programs, allowing you to choose the right one for you whether you’re a first-time home buyer or a seasoned investor.

Experience a
Hassle-FREE
Mortgage Process!

Before you start looking for your first home, you should get pre-qualified with a licensed Mortgage Professional so you know your buying power. Choosing a purchase loan product that matches your goals and making sure you get the best rate for your given scenario can feel like playing whack-a-mole.

We’re here to make the home loan process a whole lot easier, with tools and expertise that will help guide you along the way, starting with a FREE pre-approval letter request. We’ll help you clearly see differences between loan programs, allowing you to choose the right one for you whether you’re a first-time home buyer or a seasoned investor.

What is the Conventional OTC Construction Loan?

As its name implies, a Conventional One-Time Close (OTC) is a Construction-to-Permanent loan program that offers all-in-one financing. Available for manufactured, modular, and stick-built homes, OTC loans allow borrowers to finance the construction of a home, lot purchase/land payoff, and permanent mortgage with just one closing.

Designed to simplify the financing process for new home buyers, our One-Time Close Construction Loan Program offering includes Conventional, FHA, VA, and USDA programs.

What is the
Conventional OTC
Construction Loan?

As its name implies, a Conventional One-Time Close (OTC) is a Construction-to-Permanent loan program that offers all-in-one financing. Available for manufactured, modular, and stick-built homes, OTC loans allow borrowers to finance the construction of a home, lot purchase/land payoff, and permanent mortgage with just one closing.

Designed to simplify the financing process for new home buyers, our One-Time Close Construction Loan Program offering includes Conventional, FHA, VA, and USDA programs.

What is required for a Conventional OTC Construction Loan?

A Conventional One-time Close Construction Loan is mainly used to finance the building of the borrower’s home and permanent mortgage all into one individual transaction with a single closing. The borrower is going to be approved for a standard Conventional One-time Close Construction Loan if the borrower is already qualified for a long-term permanent conventional mortgage. Upon conclusion of construction, the borrower is going to be expected to convert from the interim construction loan right into a permanent standard fixed-rate loan. There’ll be no other closing or even closing costs required.

What’s required for a
Conventional OTC
Construction Loan?

A Conventional One-time Close Construction Loan is mainly used to finance the building of the borrower’s home and permanent mortgage all into one individual transaction with a single closing. The borrower is going to be approved for a standard Conventional One-time Close Construction Loan if the borrower is already qualified for a long-term permanent conventional mortgage. Upon conclusion of construction, the borrower is going to be expected to convert from the interim construction loan right into a permanent standard fixed-rate loan. There’ll be no other closing or even closing costs required.

What are the benefits of a Conventional OTC Construction Loan?

Faster turnaround times, low construction admin fees, and the ability to apply various down payment assistance programs through our loan program are just a few of the ways Valor Home Mortgage can help you achieve your goal of building your dream home.

You only need to qualify once. If the borrower qualifies for long-term financing, they will be eligible for a one-time close construction loan. They don’t have to qualify again for the permanent funding after completion of the home construction.

Reduces the risk for the borrower. Since borrowers don’t have to qualify twice, they significantly reduce the risk of “re-qualifying” again once the house construction has been completed.

Fixed interest rate. The interest rate on a single-close construction loan can be locked a couple of months before the actual completion of the construction. The interest rate during the construction stage is pre-determined and will convert to a pre-determined rate when they close on the loan.

Reduced closing costs. A one-time close construction loan only has one closing, so they don’t have to pay for second closing costs.

Single appraisal requirement. Two-time close transactions require two separate appraisal reports, by two different appraisers, both paid by the borrower. A single-close construction loan only requires one appraisal before closing on the final loan.

Avoid intervening liens. An intervening lien happens when the borrower gets a two-time close loan that does not convert to permanent financing and requires a second closing for the second loan. The recording of the second deed of trust to pay off the construction loan will be present. Typically, this happens when the borrower disputes with the builder about the quality of craft. The final payment is withheld, and the subcontractor doesn’t get paid. In return, the subcontractor files a “mechanics lien,” which is an intervening lien.

What are the
benefits of a
Conventional OTC
Construction Loan?

Faster turnaround times, low construction admin fees, and the ability to apply various down payment assistance programs through our loan program are just a few of the ways Valor Home Mortgage can help you achieve your goal of building your dream home.

You only need to qualify once. If the borrower qualifies for long-term financing, they will be eligible for a one-time close construction loan. They don’t have to qualify again for the permanent funding after completion of the home construction.

Reduces the risk for the borrower. Since borrowers don’t have to qualify twice, they significantly reduce the risk of “re-qualifying” again once the house construction has been completed.

Fixed interest rate. The interest rate on a single-close construction loan can be locked a couple of months before the actual completion of the construction. The interest rate during the construction stage is pre-determined and will convert to a pre-determined rate when they close on the loan.

Reduced closing costs. A one-time close construction loan only has one closing, so they don’t have to pay for second closing costs.

Single appraisal requirement. Two-time close transactions require two separate appraisal reports, by two different appraisers, both paid by the borrower. A single-close construction loan only requires one appraisal before closing on the final loan.

Avoid intervening liens. An intervening lien happens when the borrower gets a two-time close loan that does not convert to permanent financing and requires a second closing for the second loan. The recording of the second deed of trust to pay off the construction loan will be present. Typically, this happens when the borrower disputes with the builder about the quality of craft. The final payment is withheld, and the subcontractor doesn’t get paid. In return, the subcontractor files a “mechanics lien,” which is an intervening lien.

Who is eligible for Conventional OTC Construction Financing?

Loan qualification is the biggest hurdle for most home buyers – but it’s not as intimidating as it looks. Qualifying for a Conventional One-Time Close Construction Loan is no more complicated than qualifying for a conventional home loan. If you’ve ever bought a property, you’re familiar with the steps.

Naturally, not everyone will qualify for a Conventional One-Time Close Construction Loan. Your loan amount will depend on your overall financial health and risk level.

The Conventional OTC Construction Loan Process

Here’s how our home loan process works:

  • Complete our simple Conventional One-Time Close Loan Qualifier
  • Receive options based on your unique criteria and scenario
  • Compare mortgage interest rates and terms
  • Choose the mortgage loan offer that best fits your needs
  • Let us connect you with an Elite Realtor to start the process towards building your perfect home

Who is eligible for
Conventional OTC
Construction Financing?

Loan qualification is the biggest hurdle for most home buyers – but it’s not as intimidating as it looks. Qualifying for a Conventional One-Time Close Construction Loan is no more complicated than qualifying for a conventional home loan. If you’ve ever bought a property, you’re familiar with the steps.

Naturally, not everyone will qualify for a Conventional One-Time Close Construction Loan. Your loan amount will depend on your overall financial health and risk level.

The Conventional
OTC Construction
Loan Process

Here’s how our home loan process works:

  • Complete our simple Conventional One-Time Close Loan Qualifier
  • Receive options based on your unique criteria and scenario
  • Compare mortgage interest rates and terms
  • Choose the mortgage loan offer that best fits your needs
  • Let us connect you with an Elite Realtor to start the process towards building your perfect home

Get Your FREE Loan Quote Now!

Get Your FREE
Loan Quote Now!

Whether you’re buying a new home, refinancing, looking for a cash-out, or just have questions about the process, our Elite Team of Mortgage Professionals will help you find the right mortgage solution!

Whether you’re buying a new home, refinancing, looking for a cash-out, or just have questions about the process, our Elite Team of Mortgage Professionals will help you find the right mortgage solution!

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