One-Time Close Construction/Permanent Loans

NCF provides interim construction funding and construction loan administration for true One-Time Close staged funded construction-to-permanent loan programs designed for manufactured, modular, and site-built housing projects. NCF’s construction administration platform allows participating mortgage lenders to offer FHA, VA, and USDA OTC construction loan programs to their brokers and loan originators nationwide.

The permanent lender underwrites and approves the permanent portion of the loan prior to the start of construction. NCF reviews and administers the construction portion of the loan. Once all lender and construction-related closing conditions have been satisfied, NCF helps coordinate the closing process. The One-Time Close construction-to-permanent loan closes in the lender’s name and includes documentation for both the construction phase and permanent phase of the loan. Once the loan closes, construction may begin.
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Because the permanent financing closes before construction begins, there is no borrower requalification at the time of conversion from the construction phase to the permanent phase of the loan for FHA, VA, and USDA One-Time Close construction loans. As a true One-Time Close transaction, borrowers do not return for a second closing once construction is complete.

Key Benefits

• FHA financing available up to 96.5% LTV
• VA and USDA financing available up to 100% LTV
• Single closing completed prior to the start of construction
• No borrower payments due during construction
• Borrower’s first mortgage payment begins after construction completion
• No credit, income, or appraisal expiration after closing
• No borrower requalification upon construction completion for FHA, VA, and USDA loans
• Staged construction draws based on line-item percentage-of-completion method
• Available for manufactured, modular, and site-built housing projects