Construction to Permanent Loan Guidelines
The construction to permanent program, also known as the One Time Close Loan, has more specific requirements compared to other loan programs. Learn more below to see if you can use this option when purchasing a home.
3.5% Down Payment
Need a 3.5% down payment for FHA and 0 Down for VA or USDA.
620+ FICO
This program requires a minimum 620 FICO credit score.
DTI Varies
Debt-to-income ratio depends on whether if it's a FHA, VA or USDA loan.
Overview of the Construction to Permanent Loan
The One Time Close Loan program combines the low down payment & affordability of the FHA/VA/USDA program while fulfilling the increasing demand for new housing in today's market.
The OTC program is not so much a borrower loan program, but rather a builder/dealer program which augments their ability to sell and build new homes. Which permits less risk and penetrate a larder segment of the market.
Depending on your situation, the down payment can be as low as 0% if you are active military, veteran or buying through the USDA loan. Max loan amount varies upon which program you go through as well. This program is great for those looking to build their dream home.
Additional Benefits of the New Construction Program
There are additional pros of going with this program when purchasing your home.
Our Past Clients Love Us
