One‑Time Close Construction Loans

Simplify your build with ONE loan, ONE application, ONE approval—and ONE closing.
You’ll pay only one set of closing costs, have one interest rate, and never need to requalify once construction is complete—saving time, hassle, and money.

🔹 How It Works

• Combined Financing: UWM’s OTC (One-Time Close) program merges land acquisition, construction financing, and permanent mortgage into a single loan closing—eliminating separate construction and permanent loans Granite Risk Management+15HousingWire+15EBLOCK LOANS+15.

• Streamlined Process: One credit report, one income qualification, one approval—all before construction begins AFR Wholesale+2HousingWire+2NYAMB+2.

• Fixed Interest Protection: Your interest rate is locked at closing and remains in effect until conversion to the permanent phase. If rates decline during construction, the loan automatically modifies down Granite Risk Management+9ACE Training+9AFR Wholesale+9.

• Single Closing Fee: Only one set of closing costs lowers overall borrower expense compared to separate closings Travis Penny+3HousingWire+3AFR Wholesale+3.

• No Re‑Qualification: No second approval is required—once underwritten at the start, you’re good until the permanent loan phase begins Scotsman Guide+15ACE Training+15AFR Wholesale+15.

🔹 Conventional & VA Options Available

Conventional OTC Loans

• Available on 15‑ and 30‑year fixed-rate loans, including conforming and High-Balance products.

• Loan-to‑value up to 95% depending on program overlays; credit score requirements vary by product (typically 680+ for conventional).

VA One‑Time Close Construction Loans

• Backed by VA with 100% financing—no down payment required for eligible veterans and service members, though VA funding fees may be financed into the loan.

• Only VA‑certified registered builders can perform the work; builder must appear on VA’s builder list, complete VA builder forms (including VA Form 26‑421 and VA 8791), and provide a VA Builder ID number.

• Construction timeline is typically limited to 11 months; modules and manufactured homes sometimes have shorter terms. Extensions may trigger higher variable-rate carryover financing.

🔹 Granite Risk Management Builder & Project Approval

To qualify for OTC loans through UWM, both builder and project must be approved by Granite Risk Management—UWM’s construction oversight partner:

1. Builder Approval (Contractor Review)

   • Requires submission of fully executed contractor checklist (Form B) and related documents.

   • Builder must have current VA builder ID for VA loans.

   • A $150 Contract Review Fee applies (refundable if builder has been approved within 12 months).

2. Project Approval (Project Review Checklist, Form D, with supporting docs—including plans, budgets, contracts, permits, insurance, appraisal)

   • A $300 Project Review Fee applies per project.

   • Granite review typically completes in 3 business days; additional 2 days if more info is needed.

   • Submission can begin as soon as the property is secured, even before permits are in hand.

   • Budgets must include minimum contingency reserves (5% standard; 10% in TX). An initial draw-at-close is allowed (up to 10% of construction cost or $50K, whichever is less).

After approval, UWM stays engaged through construction—managing draws, inspections, and communication with the builder until conversion to permanent financing.

✅ Why Work with Kirby & Angie — Arch Mortgage North

• Deep expertise with UWM’s OTC products for both Conventional and VA new‑construction loans

• Specialized coordination with Granite Risk Management to get your builder and project approved—and keep things moving smoothly

• Full-service support: from builder packaging and subcontractor coordination to lender submission and closing

• Veteran-focused: helping armed‑service clients maximize VA benefits, including 0% down options and no PMI

• Northern Michigan Network Advantage: trusted relationships with local builders, agents, and appraisers—a powerful referral and collaboration ecosystem