Be Sure To Ask Our Bankers How To Qualify For An Additional *$50,000 Before Or After Closing To Use As You Wish!
If you visit other websites looking for this type of loan, you will notice most start out with this one question: What is a one-time close construction loan?
Unlike any other loan, the short answer is a single close construction loan to cover your build costs and land/lot purchase into a straightforward loan, reducing the need to re-qualify for three separate loans. We go further than other banks by focusing on the more important aspects you want to know, like; how you will get pre-qualified at a low attractive rate and term. As an FDIC Insured Bank, we lend on OTC, and two-time close construction, purchase, refinance, and renovation loans in all 50 states.
This One-Time Close Construction Loan Guide is designed to provide the information you need to make the best possible decision on who you choose to handle your loan. We aim to take the small town bank approach with the more significant 50 state bank risk, especially on this property type.
We’re probably not the first company you found when starting your online loan search. If it is, we’re lucky to have found each other first. Many lenders advertise for this type of construction loan who provide “not so great options,” so let’s get right to it and first take a short test to see if you are in the right place.
640 minimum credit score required
Conforming, High-Balance, and Jumbo Loan amount to $3+ Million.
Single Family, Multi-Family, Primary Residence, 2nd Homes, and Accessory Dwelling Units Eligible.
Available in all 50 states.
Up to 100% under our VA program for Veterans.
1 Loan vs. 3 saves closing costs, appraisals, title fees, & down payments when factoring in land loan, construction loan, and final take-out loan of traditional construction financing.
NO Re-qualification once construction is complete.
NO Re-Appraisal, only one appraisal completed as if the home was built.
Land can be used as a down payment if owned or purchased simultaneously.
The land you own with a loan balance remaining will be paid off and rolled into the loan.
Our construction loan is 100% in place before breaking ground.
Full inspectors ensure your build is going as planned before payments are made to the builder.
Builder is never paid for work not yet completed, designed to protect you, the customer.
Attractive Fixed and Interest Only terms are available.
No Self-Help, Family Builders, and Buyer can not act as a contractor or complete any work on the home.
Builder / Retailer can offer seller concessions, roll in closing costs, VA loans may be possible to have zero out-of-closing.
*Qualified borrowers may be eligible for up to $50,000 additional personal loan before or after closing to use the funds as they wish.
YES: Modular, Manufactured Double & Triplewide, Frame, Brick, Jumbo Home Financing, Steel/Metal Homes, Barndominiums, Log Cabins, Concrete Block Homes, SIP Panel Homes, ICF Insulated Concrete Foam Homes, New Foam Homes, Log Cabin Style Homes, 1-4 Multi-Family, 2nd Homes, ADU Accessory Dwelling Units.
Ineligible Property Types: Earth Contact, Geodomes, Container Homes, Tiny Homes, Shomes (Shop Homes), A-Frames, Mixed-Use Property, NO Investment Homes, Nor Any Commercial Projects. No Self Build, Relative Build, Employer Build, or Self Contracting Allowed. *We do not offer New From Dealer Manufactured Home Loans in New York. Modular and Site Built land and home construction is allowed in all 50 states.
Respond “YES” to Each Of the top 5 qualifiers, and you Are one step closer to getting the hottest One-Time/Single Close Construction loan BuildBuyRefi.com has to offer.
Respond “NO” To Any Of These Statements, And You May Still Qualify!
Whether you already own land or are searching for a plot of land to build your home on, the key is that you will own this land. If you already own land and it has a lien on it, we can pay off that lien and roll it into the loan, or we can put your land contract into the new construction loan before you put money down and close on it. The one-time close construction loan does not allow you to build on land you will not own and is owned by a friend or family member. There are cases where family members can gift you some land, but you have to make sure that this land is surveyed off separately, and this is something we can help direct you to handle appropriately.
Aside from traditional single-family site-built homes that are owner-occupied, we offer manufactured, modular, Jumbo Home Financing, Steel/Metal Homes, Barndominiums, Log Cabins, Concrete Block Homes, SIP Panel Homes, ICF Insulated Concrete Foam Homes, New Foam Homes, Log Cabin Style Homes, 1-4 Unit Multi-Family, 2nd Homes, Investment Homes, ADU Accessory Dwelling Units.
Ineligible Property Types: Earth Contact, Geodomes, Container Homes, Tiny Homes, Shomes (Shop Homes), A-Frames, Mixed-Use Property, Nor Any Commercial Projects. No Self Build, Relative Build, Employer Build, or Self Contracting Allowed.
The one-time close program was created to bring more new home builds to the market for borrowers restricted by the significant 20% or more downpayment required by traditional construction lenders. Additionally, because we allow up to 100% financing on our VA program, this keeps more money in your pocket and creates an opportunity that was not there originally.
The most significant risk of moving forward on traditional construction loans is the time and risk involved with three separate closings. The three closings are usually for your land, construction build-out, and the final take-out loan to pay off the first two loans. You are required to qualify for financing, terms, rates, closing costs, appraisals, and underwriting guidelines each time. During this time, a lot can happen, such as job layoffs, increased debt from emergencies, or unforeseen circumstances that could keep you from qualifying along the way.
With the one-time close construction loan, you only qualify once, lock your loan from the beginning, and do not have to risk the changing rate market or possible changes to loan guidelines. One of the most considerable advantages is no re-qualifying means. Once you close, you build your home, and everything is done.
Great, if you answered “YES” to each of these, you passed the first part of our quiz. If you have a “NO” somewhere, call us now, or take our eligibility checker to discuss your situation. Answering “NO” doesn’t mean you won’t qualify; we need to find out which area impacts your request. Keep scrolling to the next section to learn more about the BuildBuyRefi OTC loan.
Anyone offering you a guarantee for the one-time close construction loan is probably someone you want to avoid. No loan closings are guaranteed until you've met all conditions and closed your loan. But let’s discuss further how you can get the results you desire.
Applying and getting pre-qualified for a single-close or two-time close construction loan is only the first step in the process; it doesn’t guarantee you’ll get the rate, terms, or program you were pre-qualified for initially. Many factors go to achieving that low rate and great program you wanted, which is “the speed at which YOU and your chosen builder move.” Time plays against every borrower in a big way with any loan.
Rate Locks Expire: Many loans are locked for 30 days because the shorter term allows you to get the lowest rate possible. If you lose your rate lock by letting it expire or needing to extend it because you took weeks to get the items back, it will cost you more money or a higher rate. With rates recently rising, a higher price could make you no longer eligible for the loan you wanted. A long delay could require you to re-qualify for the loan again.
Programs Could Disappear: It’s happened before; we’ve witnessed many loan programs get wiped out overnight. Investors can choose to change their risk portfolio and stop offering programs altogether; that is why moving fast on the approval you have in your hand means taking action.
Your Job or Income Status Could Change: What if you lost your job, your income was reduced, or you wanted to take a new job, but it put your loan closing in jeopardy because you took too long? Any changes in your employment status could come back with more unfavorable terms or, worse, a complete loan denial.
Your Credit Score Could Dramatically Change: We’ve seen this happen so many times; a borrower maxes out their credit card for business, or they miss a payment because they weren’t paying attention, or judgment/collection was filed for any number of reasons. Not closing quickly under the same credit terms is another reason underwriters require you to re-qualify or cancel the loan.
Find a lender you feel confident in and apply to get pre-qualified from that lender. Ensure the lender has the program you want, and if they don’t sound confident they can close this program and have experience and reviews doing so, then keep looking! You may want to check out our reviews to help give you this confidence.
Request a rate lock on your loan once you are pre-qualified and get your lender every item needed as fast as necessary to close your loan, so your rate lock doesn’t expire. Your side of the process is complete when the loan is closed, not when you think you sent enough to satisfy the lender and underwriter.
Take responsibility and move fast; as you know, rates have been on the rise lately. Wait too long, and you could end up with a higher interest rate, qualifying for a smaller loan than if you locked in faster on a lower price. It’s your job to ensure you meet all requirements, not the loan officer's or lender’s position to hold the file open as long as possible, paying for the rate lock extension out of their pocket. Locks cost money because your lender reserves the funds and rate you want. It’s your responsibility to ensure you move fast so as not to let that lock expire, or it could end up costing you.
Modular homes are viewed by our team the same as stick-built or site-built homes. Many borrowers choose modular homes for many reasons. Their superiority to build quality in climate-controlled conditions and faster construction times when dealing with more in-climate weather around the country makes these homes a great option. Not to mention the costs are significantly reduced over site-built homes. Modular Homes are usually built in more than 4-10 sections, do not come attached to an axle and tongue, and are not issued a VIN like a Manufactured Single, Double, or Triplewide. You can choose builders from across the country, order your home and have it delivered, installed, and set up all under this program.
Get Up To 100% For Veterans & Jumbo Limits up to $3 Million. These styles consist of wood, log, frame, brick, and more traditional construction styles acceptable under our version of this program. Build a ranch slab, starter home, ranch walkout, ½ story, or two-story home with or without a walkout, but stay on the more traditional side of this property. Find a great piece of land and start building your dream home for you and your family.
Manufactured doublewide or triple-wide manufactured homes from the dealer of your choice to place on the land you own or land you found and want to buy are eligible, along with Barndominium Style/Metal Style Homes.
We do not offer this option for those looking to place a home on land not owned with this property, such as mobile home parks, rented lots, leased land, family-owned land, or any land you do not own where the home must be permanently affixed to.
Interest-Only payments during construction and one-time and two-time construction loans are available for great manufactured property styles. Must be a minimum of 600 sq. ft.
*We do not offer New From Dealer Manufactured Home Loans in New York. Modular and Site Built land and home construction is allowed in all 50 states.
*Modular homes are not considered manufactured homes; they fall under the same category as Single Family Homes and do not have the same restrictions as Manufactured Homes. Every program available to a Single-Family Home extends to Modular.
YES: Jumbo Home Financing, Steel/Metal Homes, Barndominiums, Log Cabins, Concrete Block Homes, SIP Panel Homes, ICF Insulated Concrete Foam Homes, New Foam Homes, Log Cabin Style Homes, 1-4 Unit Multi-Family, 2nd Homes, ADU Accessory Dwelling Units.
Ineligible Property Types: Earth Contact, Geodomes, Container Homes, Tiny Homes, Shomes (Shop Homes), A-Frames, Mixed-Use Property, NO Investment Homes, Nor Any Commercial Projects. No Self Build, Relative Build, Employer Build, or Self Contracting Allowed. *We do not offer New From Dealer Manufactured Home Loans in New York. Modular and Site Built land and home construction is allowed in all 50 states.
These terms (FHA, USDA, VA) refer to the government-backed program type. More often, which one you choose is decided by location, loan amount, borrower status, and the borrower’s desired transaction request. Each program has a different set of product offerings underneath it that are uniquely different. Let’s explain what these are.
Conventional and FHA Construction loans are among the most popular and utilized programs. FHA stands for the Federal Housing Administration, a government agency devised to help increase homeownership to lower credit scores, income amounts, and debt ratios. Because of this, the FHA loans come with Mortgage Insurance and won’t automatically drop off when you get lower than 80%; you will be required to refinance out of an FHA loan if you want to drop the mortgage insurance monthly premium.
Conventional and FHA Construction Take Out Loan options have a maximum loan amount depending upon what county the property is located in.
The best solutions available to Veterans and their spouses fall under the VA home loan benefits program. Of all manufactured loan programs, the VA loan offers the highest loan to value, competitive interest rates, and comes with no mortgage insurance at all. Most veterans looking to build their dream homes should take advantage of the VA construction loan program at every chance possible.
Sometimes Realtors will turn away this loan type, which means you’re working with the wrong realtor because they are the strongest of all government-backed home loan programs. Every program offered through the VA allows for 100% or higher in loan financing. We provide the complete 100% OTC construction loan, buy your land and home in one loan, not three separate transactions.
The VA construction loan comes with fewer reports required for manufactured homes; if this is your chosen build choice, it moves much faster than both the FHA & USDA versions of the OTC. You will even be able to finance large tracts of land and have certain exceptions granted that you will not find in conventional, FHA, or USDA types. The VA loan has no location or income restrictions, but it has certain DTI restrictions.
Construction loans are for those ready to undertake the exciting process of choosing the exact plot of land to build and designing the custom facets of the home they wish. It’s also available if you own your land and want to combine everything into one low-rate loan. We offer up to 100% two-time close construction loans for land & the complete build-out, or in the case of a manufactured property, the construction and permanent location of the unit to your site. We will underwrite a construction loan and the final loan to our guidelines.
So far, the most popular loan program requested on this site is a One-Time (single close) and Two-Time Close Construction Loan. These product types allow borrowers with a credit score less than 720 (standard construction requirements) but above 640 credit score to build their own home exactly how they want it, where they want it.
Instead of the three loans, like a traditional construction loan, we complete everything in one closing or two. Find the land you want, or if you already have it, build the home you want and roll it into one loan. No more separate loans, separate costs, different appraisals, and most importantly, no separate qualifying for each loan.
You can lock in your final interest rate before rates rise, which you can not do on construction to permanent financing before you break ground. While the costs can be higher than traditional loans, you won’t find as many 100% construction programs today as you will with BuildBuyRefi.
While we have offered the USDA Construction loan in the past, we do not currently offer this version. It’s possible we bring it back; however, we’ve found most borrowers either surpass the income limits that USDA requires or can not qualify for the restrictive debt ratio limits. Therefore we offer multiple other options allowing our customers to accomplish a similar goal with less restrictive requirements.
*640 Minimum FICO credit score required for many construction loans; higher credit scores may be required for additional land, jumbo, multi-family, or second homes.
The rate you receive depends on many factors since rates change daily, sometimes multiple times a day, the quote you receive today most likely will be different tomorrow. That is, of course, if you have not locked in your loan.
Borrowers with a 620 credit score may see a little higher rate than those with a 680, 720, and higher. The higher your credit score, the investors will offer you better prices. They do this because those with higher scores have proven to be of lower credit risk than those with higher scores.
Can we lend lower than 640?
For the One-Time Close Construction Loan, we do not allow any exceptions to the credit score, but we may be able to help you raise your credit score to qualify. Most traditional construction loans require a 720 or higher credit score and 20% down, and since we have access to programs that go up to 100%, we’ve made a strict guideline requirement for the score not to go below 640.
A few things happen when a borrower has a score under 640.
The pricing adjustments for lower scores and loan amounts become a high risk for the lender. And due to offering the full suite of programs government-backed lending has to offer, we stay away from providing any loan that targets what the government deems to be “high costs.”
It’s even true that some people can have a 640 credit score with limited trade lines that would not get approved, but it is essential to show our underwriters you can make payments on time and are at low risk of defaulting on your home loan. If you have a higher score but no active tradelines, you want to call and speak to one of our bankers before applying for this loan.
It's possible that if you fall under the 640 threshold, there are some areas where credit repair could help you become more attractive to our underwriters. In many instances, you don’t have to go through a 3rd party credit repair company, as today’s lenders have tools to help you determine what moves you can make to improve your score. Do what is needed, and not only would you get a lower interest rate, you could qualify for a higher loan amount with better home options than if you settled for borrowing with worse credit.
While we accept almost every income type when verifying and approving these loans, the two we won’t loan on are stated income loans or bank statement-only loans.
W2 Full Time & Part-Time Employees
Self-Employed or 1099 Income
Active Military Income
Retirement, Pension, 401k regular disbursement income
Social Security or Disability income
It’s important to note that any change during employment status, such as getting fired or switching jobs, is grounds for denial or re-underwrite. You want to avoid any change in your job status while completing your loan, and if there is the slightest chance something might change, you need to speak to your loan officer immediately about this.
Please do not assume that it will be approved because you are getting a better job offer. Changes like these scare underwriters and will increase the documentation you’re required to provide. It could delay your closing, cost you a rate lock, or you could lose your purchase money escrow altogether.
You will save thousands in lost time and money by being as upfront as possible with your loan officer.
We Won’t Leave You Guessing What Is Going On!
You may ask, why do other lenders and even my local bank offer rates, shorter terms, or require higher down-payments?
That’s a great question!
Short answer, because they aren’t specialists in these types of loans.
Longer answer…
Most lenders, brokers, and banks only have a few programs, indeed not offering anything near the vast array of construction loan products we have. Their rates are higher and loan terms shorter because they can’t touch the monthly volume we produce. They don’t offer the high loan-to-values because they still view this loan type as an increased perceived risk. If they can get you to put 20% down, they would rather have your equity.
Most are not seasoned veterans in the construction lending sphere, meaning the loan officer you worked with might never have closed one of these single-close construction loans before, and that is a dangerous mix to get involved with. You need a banker that knows how to navigate these products, and most of our bankers have 15-30 years of experience lending on these more robust construction loan types.
Your local bank or credit union may be acting like they are doing you a favor by keeping you with them, but they don’t want this type of loan on their books. They may talk you into putting more money down or taking a higher rate, saying they are making an exception to the guidelines. In this case, their inability to be competitive costs you more by staying loyal.
The BBR one-time close construction loan replaces up to 3 loans for the average borrower because of its versatility; it often comes with higher fees and costs than a traditional construction loan. We also have two-time close loans and interest-only construction loans that significantly reduce administrative fees and may offer more competitive rate options.
As a direct lender, we have very few market investors (and OTC administrators) offering to buy and fund an absolute 100% OTC for VA and up to 95% for FHA. Other construction investors require 10-20% down for less attractive construction loans, higher interest rates for the land, and the construction phase, and you must re-qualify during certain stages.
*Loan Closing Fees may be charged directly to the builder or modular home retailer, which can be added to the property's contract price, thus allowing you limited to zero down payment options.
*VA High Limit and FHA High Limit Max Loan Amounts, ability to obtain up to 100% with a 640 or greater credit score with land value restrictions applicable.
We believe in 100% transparency on all loans we offer from start to finish. Construction and Renovation loans are by far the most popular loan program requested on our sites, and because of this, we've conducted extensive research to find the hottest options available today.
We have found that other investors have less favorable terms, high down payments, multiple layers of fees, multistage loan re-qualification, and just more headaches for our borrowers.
We're honored to walk you thru this fantastic journey of building your dream home! We only ask you to understand the fees of this program as much as you embrace the positive features, so when and if you decide to move forward with us, you do so, making the best decision for you and your family.
Now, if you're ready, please continue reviewing the highlights of this fantastic program, and let's get building.
Richie, OK... so you've officially done something I've never seen in 22+ years selling real estate. Closed a VA Loan on 224 Acres, with a Manufactured Home. CONGRATULATIONS! and THANK YOU!!! Admittedly, I was skeptical (more like pessimistic) when James told me you were going to get this VA Loan completed. And I had many doubts along the way, because I'd seen so many VA Lenders fall flat on their faces, just before the Closing. BUT... You got the Job DONE! Occasionally, I find someone out there who has done an Outstanding Job, helping my Clients... and You are one of these! I'm now officially a FAN of You and Your Work. I would be honored to promote you and your services to other Agents within our company, and I intend to do so. I will call you when I've caught up on my work a bit... and learn more about how I can do my job better on the next VA transaction.
~Tom K. Realtor
THE FEDERAL SAVINGS BANK IS NOT AFFILIATED WITH OR ACTING ON BEHALF OF THE FHA, USDA, VA, OR THE FEDERAL GOVERNMENT.
*Subject to credit approval. Terms and conditions may apply. Property insurance is required on all loans secured by property.
*Messaging and Data Rates May Apply.
*VA eligibility is required for VA loan products. USDA loans are only available in USDA-eligible areas as designated by the USDA.
*We do not offer new dealer-manufactured home loans in New York, but we do offer modular and site-built land and home construction.
*Qualification for up to $50,000 extra is for qualified borrowers and can be applied to all loan programs. This is a separate unsecured consumer loan we will underwrite in-house at the same time as your requested mortgage loan. Please contact your banker to request this program and the applicable rates, terms, and conditions. Consumer unsecured lending programs prohibit loan proceeds from being used for down payment.
REALTOR® is a registered trademark of the National Association of Realtors and is not affiliated with NationwideHomeLoansGroup.com or The Federal Savings Bank.
†Subject to applicable law and lender approval, when represented by one of our participating real estate brokerage companies during the purchase or sale of a home or land, eligible Consumers may receive a rebate of up to thirty percent (30%) off of the fee to be received by the participating real estate brokerage company representing the respective Consumer, at closing, which rebate will be applied exclusively toward paying down that Consumer’s applicable closing costs. In no event shall any rebate be greater than the aggregate of all closing costs. Issuance of a rebate is subject to a participating real estate brokerage company’s receipt of its fee. The following states condition, or do not permit, the granting of a rebate by real estate brokerage companies (list is subject to change at any time): Alaska, Iowa, Kansas, Louisiana, Mississippi, Missouri, New Jersey, Oklahoma, Oregon, and Tennessee. No remuneration is paid to The Federal Savings Bank or to any of our Bankers. This is a free program offered exclusively by us to help our consumers save on their real estate transactions.
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