One Time Close Loans

One Time Close (OTC) Home Loans in Texas

If you’re thinking about buying a home, but you’re discouraged by what’s currently on the market, you may want to consider building, instead. With a One Time Close (OTC) home loan, you can finance the cost of a lot purchase, construction of your new home, and the permanent mortgage all in a single closing. Review the points below to discover the benefits of OTC Loans, then reach out to us when you’re ready to learn more.

To learn more about One Time Close Loans and receive a free rate quote, contact The Decker Group by calling (972) 591-3097.

What are OTC Loans?

OTC loans are mortgages designed with the new construction home buyer in mind. These loans allow borrowers to finance the purchase of a lot, the construction costs and the permanent mortgage all in one loan, with a single closing. OTC loans are ideal for home buyers who are looking for a simpler way to finance their new construction purchase.

These loans can also be used to finance the cost of remodeling or repairs to a home. With an OTC loan, borrowers can simply add the costs of the repairs or remodeling to the loan amount and close on a single loan. This helps provide peace of mind during each phase of the project, knowing that all aspects of financing are taken care of.

Requirements for OTC Loans in Texas*:

The eligibility guidelines for One Time Close Loans may vary, but in general, FHA OTC Loans will require at least a 3.5% down payment and a qualifying credit score. Other forms of OTC Loans (non-FHA) may have different requirements. FHA 203(K) Loans (used to finance home repairs, remodels or renovations) will also have eligibility guidelines specific to that program. Please remember, these requirements are subject to change. Please contact The Decker Group for details and exact lending criteria.

In general, the Loan-to-Value requirements for our conventional One Time Close mortgage program are as follows:

• 90% Loan-to-Value (LTV) up to $650,000
• 80% LTV up to $1,000,000

Benefits of One Time Close Loans:

• Combines financing for multiple phases of home construction or renovation into a single-close loan structure.
• Can be used to finance the construction of a new home, an existing home’s renovation project, and more.
• Can be financed through FHA loan products, allowing the borrower to take advantage of FHA Loan benefits such as low down payment and lower minimum credit scores.
• Peace of mind knowing your interest rate is locked in, even if market rates adjust during the construction/renovation phases.

Advantages to builders for referring their clients to First United for OTC loans:

• Ability to price homes more competitively without the expense of construction loans.
• Simplified builder approval process.
• Reduces construction and interest costs.
• The client building a home is a guaranteed sale whereas a spec home carries more risk.
• Builders can be paid their soft costs as part of the construction loan, including real estate commissions, architecture fees, and building permits at closing.
• Builders aren’t tying up their own lines of credit to fund construction.

Why Choose First United Bank Mortgage for Your Home Loan?

• Competitive Rates
• Variety of Programs
• Personalized Service
• Experience in the Market
• Serving Home Buyers and Homeowners Throughout the State of Texas

* Please note that mortgage programs and terms are subject to change. Please call 972-591-3097 for more details and to review current rates and terms for our mortgage programs.