American Financial Resources (AFR) has brought back its conventional one-time close (OTC) financing, which allows qualified borrowers to secure loans that combine the cost of home construction, lot purchase or land payoff, and permanent mortgage loan into a single closing.
In a statement, the firm announced that it will accept new applications for its suite of OTC construction-to-permanent financing starting on May 03. The Conventional OTC program can be used with 15-, 20-, or 30-year fixed mortgages and with super conforming mortgages originated using higher maximum loan limits permitted in designated high-cost areas.
“Traditional construction loans usually require a second round of borrower credit, asset and income qualification, as well as a second closing when the home is ready to be occupied,” said Bill Packer, executive vice president and chief operations officer at AFR. “This generally results in higher costs to the consumer as well as interest rate uncertainty, take-out financing risk for the builder, and a more complex transaction overall. These issues are solved with single-close products.”
AFR’s one-time close loans are available for manufactured homes, modular homes, and site-built homes.
“We are proud to offer a full suite of one-time close products and support our business partners with more than a decade of experience to guide them throughout the OTC process while continuing to fulfill our mission of bringing families home,” Packer said.