One-Time Close (OTC) Agenda
Why choose a OneTime Close
Faster Simpler Better One-Time Close Process
Improvements we made to our One-Time Close Program
Administration Fee
Loan Guidelines & Builder Requirements
One-Time Close Overview
One-Time Close Workflow
Underwriting
Clear to Close
Completion of Project
Construction Phase
Funding
One-Time Close (OTC) Why Choose An OTC
ONE-TIME CLOSE CONSTRUCTION-TO-PERMANENT LOAN
For manufactured, modular, and stick-built properties: finance the construction, lot purchase, and permanent mortgage all with a single loan. No re-qualification. No second appraisal.
MORE ABOUT THE ONE-TIME CLOSE Why worry about re-qualifying or incurring additional cost? Designed for manufactured, modular, and stick-built housing, this program offers an all-in-one financing option for construction, lot purchase, and permanent mortgage funding with one closing. Because the permanent loan is closed before construction begins, there is no need to re-qualify the borrower, simplifying the construction and purchase process.
One-Time Close (OTC) Faster Streamlined Process
FASTER SIMPLER BETTER!
THIS IS WHY WE ARE THE ONE-TIME CLOSE EXPERTS
One-Time Close (OTC) Faster Streamlined Process
One-Time Close (OTC) IMPROVEMENTS
CHECK OUT OUR IMPROVEMENTS We provide calculations in less than 48 hours
• All the information needed to structure your deal faster
Our Lender communicates directly with the Client/Builder/Retailer
• Faster turnaround times • Streamlined communication • Cleaner purchase contract • Less pitfalls
Credit and Constructions cleared in-house
• Speeds up the process • No need for a second submissions • Only requires one packet • Communicating with only one company
One-Time Close (OTC) IMPROVEMENTS
CHECK OUT OUR IMPROVEMENTS Go from Clear-to-Close Closing Date in half the time now
• Only 3 Business Days!
Single construction fee which includes the construction interest, as well as
• Construction draws • Title updates • Any necessary loan modifications • Construction underwriting • Construction closing coordination
Realtor commission generally paid-in-full at closing (prior to construction commencing)
• All the information needed to structure your deal faster
One-Time Close (OTC) PROGRAM OVERVIEW
The Power Is Now, Inc. offers a unique construction-to-Permanent loan for the purchase of new manufactured, modular, and site-built homes under the One-Time Close program. Our One-Time Close loan program combines the low down-payment & affordability of the FHA/VA/USDA programs while fulfilling the increasing demand for new housing in today’s market.
One-Time Close (OTC) PROGRAM OVERVIEW
The One-Time Close program provides interim construction financing, lot purchase (if need be) and permanent loan all wrapped into one. Because the permanent loan is closed before construction begins, there is no “requalifying� of the borrower when converting from the construction phase to the permanent phase of the loan. Therefore there is no need for re-appraising, second closing, or incurring additional closing cost.
One-Time Close (OTC) FEATURES
No longer does the Builder/Retailer have a require significant down payments and offer high variable rate construction loans in hopes that the borrower’s credit situation remains steadfast in order to refinance into a permanent loan. Low FHA/VA/USDA fixed rates. The rate is locked prior to closing (and construct) for the life of the loan. No mortgage payments for the borrower to make throughout the construction period. No construction interest payments for the builder/retailer to make throughout the construction period. The loan is 100% in place PRIOR TO CONSTRUCT!
One-Time Close (OTC)
ELIGIBLE CONSTRUCTION TYPES
Eligible Construction Types
The subject property must be owned and occupied by the applicants as their principal residence, one unit homes only. • New Manufactured Construction • New Modular Construction • New Site/Stick Built Housing
One-Time Close (OTC)
ELIGIBLE CONSTRUCTION TYPES
Ineligible Construction Types • Single-Wide Manufactured Homes • Condominiums • No Multi-Units • Multiple Homes on One Lot • No Attached Housing or Semi-Detached (Free standing only) • Unique/niche construction types: • • • • • •
Log Homes Bamboo Homes Metal Homes Tiny Homes Storage Container Homes Barndominimums, etc.
Non-traditional construction types not eligible.
One-Time Close (OTC) LOAN GUIDELINES
• Loan Type:
• Permanent loan is FHA/VA/USDA only
• Occupancy
• Owner-Occupied only
• Maximum Loan Amount:
• FHA: FHA County Mortgage Limit • VA: FHFA Limits (High Balance / Jumbo Allowed) • USDA: USDA Area Loan Limit
• Maximum Financing:
• FHA 96.5% LTV / VA 100% LTV / USDA 100% LTV
• Ratios:
• As determined by the AUS (must be receive DU Approve/Eligible or LP accept or GUS Accept/Eligible)
One-Time Close (OTC) LOAN GUIDELINES
CONT.
• FICO: 620 minimum credit score requirement
• FHA/VA: • 620-659 A minimum of 2 credit scores are required for all qualifying borrowers. • 660*: A minimum of 1 credit score is required for all borrowers. • USDA: • 2 Credit scores required for all qualifying borrowers.
• All ordinary FHA / VA / USDA guidelines apply
• VA / USDA: Loan is a 30 yr. Fully Amortizing Fixed but borrower must QUALIFY on a 29 yr. Amortization. • USDA: Important – Annual fee must be escrowed for 12 months
One-Time Close (OTC) WHAT ABOUT THE LAND?
LAND PURCHASED • Land can be purchased:
• Simultaneously from the builder/retailer • Through a third party
LAND PURCHASED • Land can be currently owned (build on own land): • Recently purchased • Free & Clear • With a mortgage(s)
LAND GIFTED • Land can be gifted (all Standard FHA/VA/USDA gift guidelines apply).
LAND GIFTED • FHA/VA: Land Equity will be used as borrower’s down payment. • USDA: Not applicable – 100% LTV
One-Time Close (OTC) WHAT ABOUT THE LAND?
SELLER CONCESSIONS • FHA/USDA: 6% • VA: Not to exceed 4% plus allowable VA items*. • FHA: Allowable to maximum FHA guidelines. The borrower, who owns the land and has equity, may be able to structure the transaction in a way that would enable them to purchase with no money out of pocket. If the land is not owned, the usual 3.5% down is required. • VA/USDA: Allowable to maximum VA/USDA guidelines. The borrower, with seller concessions, may be able to structure the transaction in a way that would enable them to purchase with no money out of the pocket.
One-Time Close (OTC) THE BUILDER/RETAILER
• The Builder/Retailer must act as and be the General Contractor (or Construction Coordinator) therefore they are responsible for “turnkey” completion of the home and all site improvements. • No “Self-Help”: The borrower cannot be responsible for or perform any aspect of the construction/site improvements. Nor can they be responsible for hiring any sub-contractors to perform such work. • No related parties, Employee/Employer relationships or “Identity of Interest” between borrower and builder/retailer. • Must be arm’s length transaction between all parties.
One-Time Close (OTC) HOW DOES IT WORK?
• The lender utilizes a flat Administration Fee which covers all the construction related fees and intern construction interest. • The lenders Administration Fee is charged directly to the Builder/Retailer, not the borrower and therefore will be included in the Builder/Retailer’s contract sales price of the home.
One-Time Close (OTC) OTC PROGRAM OPTIONS
DRAW • Standard process where the Builder/Retailer will receive draws according to the contract and work completed. • At Closing, regardless of No Draw/Draw Option, the Land Seller or the mortgage will be paid off/funded. • This option requires a “Project Review”. TPIN CONSTRUCTION UNDERWRITER
One-Time Close (OTC) OTC PROGRAM OPTIONS
DRAW • Streamlined process where the Builder/Retailer has agreed to no intern construction draws through out the process and will receive all their monies at the time the home is complete. • At closing, regardless of No Draw/Draw Option, the Land Seller or the mortgage will be paid off/funded.
• Saves time since there are no 3rd parties involved. • Builder/Retailer pays a lesser Administration Fee!
TPIN CREDIT UNDERWRITER
TPIN CONSTRUCTION UNDERWRITER
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