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American Financial Resources, Inc. (AFR) reinstated its Conventional One-Time Close Construction-to-Permanent financing and will begin accepting new applications on May 3, 2021.
Rounding out AFR’s comprehensive suite of OTC financing, Conventional OTC allows qualified home buyers to secure loans that combine the cost of home construction, lot purchase or land payoff, and permanent mortgage loan into a single closing, according to a press release.
The Conventional OTC program can be used with 15-, 20-, or 30-year fixed mortgages; super conforming mortgages originated using higher-maximum loan limits permitted in designated high-cost areas; plus, such programs as the Freddie Mac Home Possible program and select Fannie Mae programs.
“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, American Financial Resources, Inc. “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.”
OTC loans are available for manufactured homes, modular homes, and site-built homes; and AFR offers a variety of financing options for eligible borrowers including FHA, VA, USDA and Conventional OTC programs.