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One-Time Close Construction Loan

Build your dream home with one loan, one closing, and one set of fees.

Lock your rate before you break ground | One application, one closing

OTC Construction Loan

  • Up to 95% LTV on purchases (5% down)
  • VA: 100% LTV available (0% down)
  • 11-month build + 1-month modification
  • Interest-only during construction
  • 90-day rate lock during build

Verified terms from UWM Wholesale Lending

Key Benefits

  • Single Close — No Refinancing
  • Rate Lock Before Construction
  • Land + Build in One Loan

WHAT DO YOU NEED TO QUALIFY?

Credit & Eligibility

  • 700 FICO minimum (Conventional)
  • 620 FICO minimum (VA loans)
  • Primary residence, second home, or investment
  • Owner-builder allowed on primary residence
  • Tear-down & rebuild eligible

Builder Requirements

  • Licensed general contractor required
  • VA builds: VA Registered Builder + Granite approved
  • Builder approval package submitted to UWM
  • Construction plans and specs required
  • Project review by UWM underwriting

Get Builder Approved

Loan Structure

  • 95% max LTV on purchases (5% down)
  • 100% LTV on VA loans (0% down)
  • 11-month construction + 1-month mod
  • Interest-only during build (Conv)
  • No payments during build (VA)
  • Conforming and High Balance limits
  • 90-day rate lock during construction

Get Your Loan Terms

Powered by NEXA Lending LLC

Access to 280+ wholesale lending partners • Licensed in Colorado • NMLS #2587985

THE OTC CONSTRUCTION ADVANTAGE

Our one-time close program eliminates the complexity of traditional construction financing — one loan takes you from land to permanent mortgage.

Learn About NEXA Lending Partnership

Single Close

One loan. Less Hassle.
One closing, one set of fees.
Simplify your build.

Rate Lock

Pre-construction rate lock.
Market change protection.
Secure your rate.

One Application

Single qualification process.
No second approval needed.
Apply once.

Seamless Transition

Construction to permanent.
No re-fi at completion.
Build with confidence.

WHO WE HELP BUILD

From first-time builders breaking ground on their dream home to families rebuilding on the perfect lot — we provide construction financing for every type of homebuilder.

Couple reviewing blueprints at empty lot

Custom Home Builders

You have the vision and the perfect lot. Traditional banks make you juggle two separate loans — one for construction, one for permanent financing — doubling your stress and your closing costs.

Family walking property with surveyor stakes

Land Owners

You already own the land — now you need to build. Most lenders require separate land loans, construction loans, and permanent mortgages. Three loans, three headaches, three sets of fees.

Homeowner with renovation plans in front of older home

Tear-Down Rebuilders

The neighborhood is perfect but the house is not. Demolishing and rebuilding means navigating demolition permits, construction financing, and permanent mortgage — all separately with most banks.

Young couple at construction site with hard hats smiling

First-Time Builders

Building your first home is exciting — until you realize lenders expect you to be an expert in construction financing. Draw schedules, inspections, and dual-loan complexity make the process overwhelming.

Family on rural property with mountain backdrop

Rural & Acreage Builders

Building on rural land means extra challenges — well and septic requirements, longer driveways, and lenders who are unfamiliar with non-subdivision construction. Finding the right financing is half the battle.

Homeowner pointing at backyard for addition

ADU & Addition Builders

Adding an accessory dwelling unit or major addition to your existing home requires construction financing that most banks will not touch. You need a lender who understands this unique project type.

WHY TRADITIONAL CONSTRUCTION FINANCING FAILS

Banks treat building a home like two separate transactions. Their outdated process creates unnecessary risk, cost, and stress for families.

Two-Close Hassle

Traditional construction requires two separate loans — one to build, one for permanent financing. Two applications, two closings, two sets of fees.

Rate Lock Risk

Construction takes months. Without a rate lock, your permanent mortgage rate could spike between groundbreaking and move-in day.

Draw Schedule Confusion

Managing construction draws, inspections, and builder payments is a full-time job. Banks make the process unnecessarily complex.

Qualification Complexity

Banks require separate qualification for construction and permanent loans. Meet the bar twice or lose everything.

THE OTC SOLUTION

One loan, one closing, and complete peace of mind from groundbreaking to move-in day.

Single Close

One loan, one closing, one set of fees. No second closing when construction is complete.

Rate Lock Protection

Lock your permanent rate before construction starts. Protected from market changes during your build.

Managed Draws

We handle construction draw management and inspections. Funds released at each milestone.

Builder Flexibility

Work with your builder or choose from our network. Licensed and insured builders welcome.

Land + Build

Finance land purchase and construction together in a single loan. No separate land loan needed.

Permanent Transition

Automatic conversion to permanent mortgage at completion. No refinancing, no requalification.

Frequently Asked Questions

A one-time close (OTC) construction loan combines your construction financing and permanent mortgage into a single loan. You apply once, close once, and pay one set of closing costs. When construction is complete, your loan automatically converts to a permanent mortgage — no refinancing required.

With an OTC construction loan, you lock your permanent mortgage rate before construction begins. This protects you from interest rate increases during the building process, which typically takes 6 to 12 months. Your locked rate carries through to the permanent mortgage phase.

Qualification requirements vary by program, but generally you will need approved building plans, a licensed and insured builder, the property or land identified, and standard income and credit documentation. Contact us for specific qualification details for your situation.

Most custom home construction takes 6 to 12 months depending on the size and complexity of the build, local permitting timelines, weather conditions, and builder availability. Your OTC loan includes a defined construction period with scheduled draw payments to your builder.

Yes. You can work with your preferred builder as long as they meet lender requirements for licensing, insurance, and experience. If you do not have a builder selected, we can help connect you with qualified builders in your area.

Start Your Build

Tell us about your construction project. We'll connect you with a specialist within 24 hours.

Your information is secure. NMLS #2587985 | NEXA Lending LLC NMLS #1660690