What what are One Time Closes (OTCs)?
One Time Close means that with one construction loan application, one loan qualification, and one loan closing, you have all of the financing you need to build your new house and move in. You are covering the costs of the construction with your commitment to pay back those funds in the form of a mortgage. You receive all the financing you needa construction loan to build your home and a permanent mortgage when construction is complete. A big added benefit of OTC is that you only pay one set of closing costs because the transaction is all completed at the same time. With a One Time Close, there are no payments during the construction phase – this is taken care of with an interest reserve fund setup as part of the overall transaction. Spend your time time focusing on your new home construction project.
