OTC Loans (One Time Close Loans - VA & FHA)
One Time Close (OTC) loans are essentially a construction loan and purchase loan wrapped into one. With an OTC loan you can purchase the land (or payoff the land if it is mortgaged), pay for site preparation, buy the new manufactured home off the lot, pay for the transportation of the home, and pay for the installation costs, all with one loan. The builder/manufacturer will coordinate with us up front to get estimates in place and will need to be willing to act as the general contractor for the entire project. The loan will be underwritten first by a construction loan lender and then by a traditional mortgage lender to either FHA or VA guidelines. This loan process can take several months to complete before any site prep is allowed to start. Once approved, the loan will close just like any other purchase transaction except during the initial phase draws will be taken to pay for the land, the site prep, and the manufactured home itself. Once the home is permanently sited and the final draw has been taken, the new homeowner will start making payments on their new FHA or VA loan.
Due to the complicated and extended loan process involved with the OTC loan products, I would suggest utilizing a manufactured home retailer that is willing to buy the land on your behalf, do any site prep necessary, and then place the home on the land and sell it to you afterward as a package deal. This dramatically simplifies the process and will allow us to get you into a better product with better rates and pricing. If you are interested in this option, give us a call and we can help you find a retailer willing to do this for you.