One-Time Close Construction/Permanent Loans

NCF provides interim financing and administration for true one-time close staged funded construction-to-permanent loans designed for manufactured, modular, and site-built housing. NCF’s construction administration service allows Lenders with which we have an alliance to offer their Brokers and Originators this unique loan product.

The Lender underwrites and approves the permanent portion of the loan before the construction begins. NCF underwrites and approves the construction portion of the loan. When all conditions for closing are cleared with the Lender and NCF, other than the final construction related conditions, NCF will help coordinate the closing. The Const/Perm Loan then closes in the Lender’s name. NCF’s closing documents include the documents for both the construction portion and the permanent of the loan. Once closed, construction can begin.

Because the permanent loan is closed on before construction begins, there is no “requalifying” of the borrower when it is time for conversion of the construction portion of the loan to the permanent portion of the loan. This is a true one-time close, therefore, the Borrowers will not need to return to the Settlement Agent for a second closing or a modification closing once construction is complete.

Key Benefits

• FHA: up to 96.5% LTV financing allowed
• USDA & VA: up to 100% LTV financing allowed
• Only one closing and its prior to the start of construction
• No payments due from Borrower during construction
• Borrower's first payment does not begin until construction is complete
• No credit doc or appraisal expiration once loan closes
• No requalification of borrower once construction is complete
• Builder/Retailer is allowed staged funded draws during construction based on line-item percentage of completion method