What is a one-time close new construction loan?

Max LTV/CLTV/HCLTV = 95% for Conventional loans

Max LTV/CLTV/HCLTV = 100% for VA loans

A single closing construction loan is the combination of financing the construction and the permanent mortgage. There is a single closing transaction that occurs prior to construction beginning.

Closing costs/fees that the borrower is responsible for are collected at closing. Funds are accessed through draws and there is  an initial draw at closing for proceeds to the contractor to begin the construction project.

 The loan purpose is a purchase when the borrower is not the current owner of the lot on which the home will be built. The borrower is using the loan funds to purchase both the lot and to fund the construction of the property. The loan amount includes the sum of the sales price of the lot and the cost to construct the property minus the down payment 

The loan purpose is a refinance when the borrower already owns the lot in which the home will be built on. The borrower is using the loan funds to pay off any existing liens on the lot and to finance the construction of the home. The loan amount includes the sum of any existing financing from purchase of the lot and the cost to construct the home. 

•  15- and 30-year fixed & 7/6 and 10/6 ARMs
• Conforming and High-Balance loan limits
• Primary, second home and investment properties
• Min FICO = 700 
• Max LTV/CLTV/HCLTV = 95%
• If the property is in a declining/risky market, it may be subject to a 10% LTV reduction based on the product’s max LTV. The following are indicators that a property would be subject to LTV reduction:
  • Declining, over supply or over 6 months checked in the One-Unit Housing Trend section
  • SSR message 1020 is present on appraisal
  • The property is in a county that’s on the declining/risky market list.

• 30-year fixed & 30-year Jumbo fixed
• Primary residence only 
• Max loan amount = $4 million 
  • Total loan amount cannot exceed the total acquisition cost, including financed funding fee
• Min FICO = 580
• Max LTV/CLTV/HCLTV = 100%
• Funding fee based on total acquisition costs 
• VA split entitlement eligible 
• No rehab constructions – an existing property cannot be renovated using a One-Time Close New Construction loan
• Escrow accounts ineligible during the construction period
• No owner builders