If you’ve ever dreamed of building your perfect home from the ground up, Northeast Financial now offers a simple, streamlined solution: the Conventional One-Time Close New Construction Loan.
This unique loan program allows you to finance both the construction and the permanent mortgage in one closing—saving time, money, and hassle.
🏡 What Is a One-Time Close New Construction Loan?
A One-Time Close (OTC) New Construction Loan combines your construction financing and your permanent mortgage into a single loan with one closing. Unlike traditional construction loans that require two closings (one to start construction and another to convert to permanent financing), this product lets you avoid the second round of closing costs and paperwork.
There are two types of OTC loans:
Purchase: If you’re buying a lot and building a home on it, the loan funds both the land purchase and construction.
Refinance: If you already own the land, the loan pays off any existing liens and finances the home construction.
✅ Key Benefits
One closing: You save on closing costs and eliminate the risk of re-qualifying later.
Interest-only payments during construction.
No reapproval required after construction is complete.
Contractor approval process adds peace of mind.
Rate float-down available if interest rates improve during construction.
Modular homes eligible.
Primary, second homes, and investment properties allowed.
🔨 How Does It Work?
Loan Approval: You’re approved based on your credit, income, and project budget.
Builder Approval: Your chosen contractor is vetted to ensure reliability.
Closing: You close on the loan before construction starts—no need for two separate closings!
Initial Draw: Funds are released to start building.
Construction: Funds are disbursed in stages (draws) as the builder completes work.
Final Inspection & Modification: Once construction is complete, your loan converts to a traditional mortgage and monthly principal & interest payments begin.
📋 General Loan Terms
Loan Type: Conventional fixed-rate or ARM options
Minimum Credit Score: 700
Max Loan-to-Value (LTV): 95%
Property Types: Primary, second home, or investment
Construction Period: Up to 11 months (plus 1 month for loan modification)
Appraisal: Based on plans and specs; final inspection required
Escrow: Required for taxes and insurance, but escrows are waived during the build
🛠 Construction & Builder Details
The builder must be approved before construction begins.
Funds are released in draws as work is completed, verified by inspection.
A construction management fee is collected at closing, based on the size of the project.
A 5% contingency reserve is required in the budget for unforeseen expenses.
Modular and unique properties (e.g., barndominiums) may be eligible.
💡 Why Choose Northeast for Your Construction Loan?
At Northeast Financial, we guide you from pre-approval through the final inspection and loan modification. You’ll work with experienced professionals who understand the construction process and will keep everything moving smoothly from the first nail to the final walk-through.
Whether you’re buying land and building new, or already own the lot and are ready to start construction, this program simplifies the financing process while giving you confidence every step of the way.
Ready to build your future? Contact Northeast Financial today to see if a One-Time Close New Construction Loan is right for you.
Footnote:
All loans are subject to lender approval and current lender guidelines at the time of application and closing.
