A one-time close, or OTC, happens when a homebuyer wants to build a home on land they own, but needs a construction loan in order to fund the build. When the home is finished, then we create the 30-year mortgage to get them on down the road with it.

The one-time close has many benefits. It pays off the land if you owe money on it, it provides funds to the builder to construct the home, and it builds in a 10% variant to accommodate any potential budget shortfalls.

“You won’t have to worry about any closing costs or builder fees.”

Upon completion of the home, the builder is paid and there’s nothing else for you to worry about. No appraisal issues, no closing costs, and no builder fees. 

If rates are better at the construction of the home than when you got the loan, you do have the option to lock in those lower rates instead. If rates go up during that same time frame, you’re protected at your initial rate.

Our company allows this one-time close to be used with VA, FHA, and conventional loans.

If you have any questions about one-time closes or anything else related to real estate, don’t hesitate to give me a call or send me an email. I look forward to hearing from you soon.