One Time Close Construction Loans: Build Your Dream Home With Just One Closing
Ready to build your new home and avoid the stress of taking out separate construction and mortgage loans? With a one-time close mortgage, home construction financing is easier, faster, and utterly straightforward. This article breaks down the most popular one-time close loan programs—so the path to a custom home feels easy, transparent, and tailored for anyone's needs.
What Is a One-Time Close Construction Loan?
A one-time close (OTC) loan covers all costs—from buying land and building your home—locked into a single mortgage process and one round of paperwork. No need to apply twice, sign multiple sets of documents, or face two rounds of rates and closing costs. One application, one closing, peace of mind.
Program Options: Conventional, FHA, USDA, VA
What Customers Want to Know
Minimum Credit Scores
Conventional loans require a credit score of 680.
FHA, VA, and USDA options have flexible minimums starting at 650.
Down Payment Requirements
Conventional: 10% down.
FHA: 3.5% down.
USDA and VA: $0 down for qualified borrowers—ideal for zero-down home construction.
Reserve Rules
Cash reserves may be needed for closing, contingency funds, and as part of loan eligibility. Requirements vary by program—Northeast Financial LLC will review specific needs during your application.
Lot Ownership and Eligibility
The lot may be owned by the borrower, the builder, or a third party, with supporting documentation.
Interested in refinancing land already owned? Many programs offer this—Northeast can explain which option fits your situation.
Contractor Guidelines
Most programs require only one general contractor.
FHA, VA, and USDA allow a separate site prep contract for manufactured homes—giving flexibility for complex builds.
Additional Perks
Lending is limited to owner-occupants and primary homes; investment properties are not eligible.
Construction terms average 12 months—ample time to build a dream home.
Appraisals are based on “as completed” value, and all-important contingency funds are set at closing for easy budgeting.
Why One Time Close Could Be the Homebuilding Solution
Choosing a one-time close loan means:
No worries about applying twice or paying multiple closing costs.
Immediate lock-in for interest rates and loan features.
Simpler budgeting, because all fees and draw schedules are set up front.
Why Contact Northeast Financial LLC?
At Northeast Financial LLC, friendly experts guide all clients through every step—so building a new home with a one-time close loan is seamless and stress-free. The process starts with a personalized consultation tailored to each homebuyer’s unique plans, credit, and financial goals.
Curious if a one-time close mortgage is right for your dream build? Don’t wait to get answers—call Northeast Financial LLC directly at 844-788-7237 or email [email protected] to get fast, actionable advice.
Take the First Step Today
Ready to learn about one-time close loans tailored for your dream home? Call or email Northeast Financial LLC now—real people, expert guidance, and a smoother homebuilding journey start here.
Connect today and discover how easy building a new home can be!
For anyone wanting to save time, money, and hassle on their custom home project, Northeast Financial LLC is dedicated to offering top advice and unbeatable support from the first call to closing day.
