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VA One-Time-Close/OTC Construction Loans. You Served, You Earned It!

The Zero-Down Payment One-Time-Close/OTC Mortgage for our Veterans and Current Military Personnel

With Millennial Home Loans quick online loan application, determining if you qualify for an VA OTC Construction Loan and for how much, has never been easier.

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VA OTC Construction Loan Interest rates change on a daily basis. To receive a quick quote on current interest rates Click Here to receive an update interest rate quote.

VA One-Time-Close/OTC/Single Close Construction Loan Program Benefits

  • The no money down VA OTC Construction Loan program allows VA eligible borrowers to create one loan amount, to purchase a lot, provide interim construction financing, wrapped into one permanent loan
  • No need to requalify for a permanent loan, upon completion of the construction phase of the project
  • $0 down required, allowing first-time homebuyer and current homeowners an affordable option to build their own custom home
  • No Monthly Mortgage Insurance or PMI, saving you thousands over the life of the loan
  • Flexible credit requirements, with credit scores down to 620
  • Safe, secure 30 Year fixed rate mortgage
  • With Builder/Retailer help, no out-of-pocket closing costs
  • Most property types allowed

VA Construction Loan Qualification Requirements

  • Constructions must be completed in nine months
  • A third-party VA Approved Builder must be selected for the project
  • Borrower must be able to obtain a Certificate of Eligibility from the VA
  • All Veterans on the loan must have a minimum 620 middle credit score
  • No foreclosure or short-sales permitted within the last 2 years
  • No Chapter 7 bankruptcies within the last year
  • No manual Underwrite. Loan approval level must be an Approve/Eligible

Everyone Wins with a VA One-Time-Close Loan:

  • Borrowers:
    • With a VA OTC Loan, unlike a traditional two-step construction loan, the borrower doesn’t need to re-qualify for the loan upon completion of the construction. With no need to re-qualify for the loan there is no need for reverification of credit, income, assets, or the appraised value of the property
    • With a single close the borrower only qualifies for a mortgage loan once Vs. three separate times as required with a traditional construction-to-perm loan. With a typical two-time construction loan, the borrower must qualify for the construction loan, the take-out loan, and when the home is almost completed as the original borrower documentation and credit reports have expired
    • With a VA OTC Loan, unlike a traditional Construction-To-Perm loan, borrowers eliminate the cost of refinancing their interim financing loan
    • Interest rate is locked prior to the loan closing, for the life of the loan; thus eliminating interest rate risk
    • No mortgage payments during the construction period
    • The loan is fully in place prior to construction
  • Contractors, Builders, Retailers:
    • Obtain the security of knowing that the borrower’s permanent loan will not only be approved, but is closed on prior to starting construction
    • The Builder/Retailer can obtain staged funded draws without having to draw on their own credit lines, thus eliminating their interest costs
    • Typical draw amounts allowed are:
      • No draw option available for all property types, provided the Builder/Retailer agrees to receive all funds upon the completion of the home
      • 3 draws for manufactured/modular housing
      • Funds can be released for the payoff of the manufactured/modular home once offline. Certain restriction apply
      • 5 draws for stick built
    • Expand the pool of eligible customers, that don't have the 10 to 20% down, that is typically required on a Construction-To-Perm project
    • Builders no longer use their credit lines to fund a construction project