Builders and Retailers
Do you have buyers who may qualify for a regular FHA, VA, or USDA end loan, but not qualify for a regular construction loan due to large down payment or high credit score requirements?
With up to 96.5% LTV on FHA loans and up to 100% LTV on VA and USDA loans, NCF's true One-Time Close FHA, USDA, & VA Const/Perm Loan with Staged Funding program provides the Builder/Retailer with the ability to expand their market to capture buyers that may not qualify for a regular construction loan.
Our program gives the Builder/Retailer the security of knowing that their buyer's permanent mortgage will not only be approved, but be closed prior to the start of construction. And with FHA, VA, and USDA const/perm loans, because the loan is closed before construction begins, there is no “requalifying” the borrower when it is time for conversion of the construction portion of the loan to the permanent portion of the loan as there is no credit, income doc, or appraisal expiration after closing.
The Builder/Retailer is also able to enjoy the added benefit of staged funded draws without the need to use their own lines of credit. In most cases, the construction draws are calculated using the line-item percentage of completion method. Funds for site improvements will be released for work in place and/or for the payoff of the manufactured/modular home unit once offline with the proper insurance in place. In most cases, this eliminates the need for a separate floorplan funding source on factory built homes.
NCF does not originate loans directly with the Builder/Retailer or the Buyer, so if your preferred Loan Originator does not have NCF’s OTC Const/Perm Loan program available for you, please have them contact us today to learn how easy it is to get started!
You'll also find the NCF OTC Guide for Manufactured/Modular Home Retailers and NCF OTC Guide for Site-Built Builders on the Forms page, which contain more details on our OTC program and process from your perspective.