Finding the perfect home in today’s competitive Texas real estate market can be
challenging. If you can’t find what you’re looking for, why not build it? The USDA OneTime Close (OTC) Construction-to-Permanent loan is a powerful tool that allows you to
finance the purchase of land, the construction of a new home, and your permanent
mortgage all in a single transaction.
Traditional construction loans often require two separate closings: one for the short-term
construction loan and another to refinance into a permanent mortgage once the home is
built. This means paying closing costs twice and facing the risk of interest rates rising during
the construction phase. The USDA OTC loan eliminates these headaches. You close once
before construction begins, locking in your fixed interest rate and avoiding double closing
costs. Plus, because it’s a USDA loan, you still get the benefit of % financing with zero
down payment required.
To qualify, the property must be located in a USDA-eligible area, and you must work with an
approved builder. The builder must be registered and validated by the lender to ensure
they meet quality and financial standards. If you’ve been dreaming of a custom-built
home in the Texas countryside or a quiet suburb, the USDA OTC loan is the most affordable
and streamlined way to make it happen in .