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Flat Branch Home LoansUSDA One Time Close Construction Loan

Are you interested in building your own home on a beautiful stretch of land, but don’t want to go through the hassle of two loan processes? The USDA One-time Close loan program provides borrowers with the ability to combine both the construction and the permanent loan financing into one single loan with one closing and a fixed interest rate. This saves you a lot of time, money, and hassle. You won’t have to go through two closings, pay closing costs on two loans, or worry about changing interest rates when the home is finished.


Great, what are the details?

The USDA One-time Close offers 100% of the construction costs with no down payment! There is only one appraisal before construction to set the loan amount, so not only is the loan fully secured before construction begins, but it also means you’re only having to pay for one appraisal. With other loan programs, along with two sets of closing costs, you could have to pay for two appraisals: one for the construction financing, and another for the permanent loan. The closing costs can be included in the loan amount, and the payments during the construction process can also be financed into the loan. The interest rate on the loan is set before construction starts and 30-year fixed interest rates are available. The process for project approval, builder approval, and construction disbursement is streamlined, automated and transparent. In case the construction of the home becomes more expensive than initially expected, the program has built-in contingency reserves for cost overruns. Sounds amazing, right?


How You can Qualify

Borrowers must meet certain USDA and lender-imposed program requirements. This involves credit qualification, income qualification, and both builder and project approval. We strive to make the process of qualification very easy and efficient, including the ability to attain an automated approval directly through the USDA’s automated underwriting system known as “GUS” (Guaranteed Underwriting System).


I’m a builder; how could this benefit me?

For you, this program makes the process much easier and much more certain. The risk involved in the project is lower because the loan is fully funded at closing. The draw and disbursement schedule is agreed upon at closing as well, so it makes that part of the process more streamlined and manageable; relieving you of unnecessary stress. You don’t have the overhead and carrying costs of speculative building, thus leaving your lines-of-credit open for other project initiatives. There is a more efficient and transparent protocol for change orders and, in case construction of the home becomes more expensive than expected, the program has a built-in contingency for cost overruns. Additionally, going through our verification process will make you a Flat Branch-approved builder, which means more business opportunities in the future!


I’m a realtor; how could this benefit me?

This loan program gives your clients more options outside of the

existing tight inventory of properties. Thanks to this, it means you can better service your clients through helping them find the perfect lot to build their dream home on. Plus, you earn your commission at the closing table, rather than when construction is complete and the home is sold.

USDA One Time Close Construction Loan Highlights