PARSIPPANY, N.J., April 22, 2021 /PRNewswire/ -- American Financial Resources, Inc. (AFR) has 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 homebuyers to secure loans that combine the cost of home construction, lot purchase or land payoff, and permanent mortgage loan into a single closing. Other program highlights include fewer limits on eligible property types, and generally no need for the borrower to provide updated income or asset documentation if the construction is completed within the estimated construction timeframe (typically less than 12 months from closing). 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," says 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. These issues are solved with single-close products."
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.
"We are proud to offer a full suite of One-Time Close products, and support our business partners with more than a decade of experience to guide them throughout the OTC process, while continuing to fulfill our mission of bringing families home," says Packer.
About American Financial Resources, Inc. American Financial Resources, Inc. (AFR) is a leading FHA 203(k) lender for sponsored originations and an innovator in construction and renovation lending, as well as being ranked among the nation's leading mortgage lenders. AFR utilizes the latest technology and delivers educational resources to mortgage brokers, loan originators and their customers. American Financial Resources, Inc. is an Equal Housing Lender: Lender NMLS 2826 at www.nmlsconsumeraccess.org. For more information, visit www.afrcorp.com.