One-Time Close Construction Loan Solutions for Builders & Retailers
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Do you have buyers who may qualify for a traditional FHA, VA, or USDA permanent mortgage loan, but may not qualify for a standard construction loan due to large down payment requirements or stricter credit score guidelines?
With financing options up to 96.5% LTV on FHA loans and up to 100% LTV on VA and USDA loans, One-Time Close FHA, VA, and USDA construction-to-permanent loan programs administered by NCF help Builders and Retailers expand their market by serving buyers who may not qualify for traditional construction financing.
One-Time Close construction loan programs administered by NCF provide Builders and Retailers with the security of knowing the borrower’s permanent mortgage financing is closed prior to the start of construction. With FHA, VA, and USDA One-Time Close construction loans, the loan closes before construction begins, eliminating the need for borrower requalification at the time of conversion from the construction phase to the permanent phase of the loan. Builders and Retailers also benefit from staged construction draws without relying solely on their own lines of credit. In most cases, construction draws are based on the line-item percentage-of-completion method with funds disbursed for work in place and eligible off-line manufactured or modular housing units covered by proper insurance. This often eliminates the need for separate floorplan financing sources on factory-built housing projects. NCF does not originate loans directly with Builders, Retailers, or Borrowers, but instead works with participating mortgage lenders and loan originators nationwide. If your preferred Loan Originator does not currently offer NCF’s One-Time Close construction loan programs, have them contact us to learn how easy it is to get started. You'll also find the NCF OTC Guide for Site-Built Builders and the NCF OTC Guide for Manufactured/Modular Home Retailers on the Forms page, which provide additional details on our OTC construction loan programs and administration process. Builder Registration for One-Time Close Const/Perm Loans
Builders participating in NCF-administered One-Time Close construction loan programs are reviewed prior to closing. The review generally considers the builder's residential construction experience, financial capacity, insurance and licensing where applicable, and other documentation necessary to demonstrate the ability to successfully complete the proposed project. Builder registration is separate from the mortgage lender's underwriting of the borrower. NCF reviews the builder and construction portion of the transaction as part of its construction loan administration process. You'll find the NCF OTC Builder/Retailer Registration Packet on the Forms page. 
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