What's happening in the Housing Construction Industry these days? “One Time Close” Custom to the Rescue!
So what does a homeowner seeking a custom home do these days? You get your own financing and let your financing bank manage the process for maximum results! OTC or Custom Perm is two step loan consisting of construction (term) and permanent financing (perm) combined into one transaction. This allows you to reduce your expenses to one set of costs usually associated with two closings. Until recently, it was more common for your builder to obtain construction or interim financing to build the home and then market it. Since so many builders found they could not sell their homes in a declining market, very few builders are proceeding using this model as banks have been forced to reorient how they handle construction projects. What about Spec Loans? Spec loans are for Builders who are financing their own project to sell. During the housing crisis, many Spec Builders and Lenders got out of the business altogether. In this scenario, after the home is built, the Buyer gets their own per