Peter Cook Mortgage

One Time Close Program

Peter Cook Mortgage offers the One Time Close loan program. The One Time Close loan program is a combination of construction and permanent financing with one closing (or settlement) for both construction and permanent phases.
  • The One Time Close loan is available to Borrowers who have an agreement with an authorized General Contractor/Builder to build a single family, detached 1-unit primary residence or second home. (No Investment Property or 2-4 Units.)
  • These Borrowers have agreed to permanent financing through Peter Cook Mortgage.
  • Individual Borrowers wishing to act as their own contractor are not allowed under this program and no "spec" or interim financing is available.
NOTE: Manufactured Housing (i.e., steel undercarriage as necessary structural component) is not eligible for the One Time Close program. Other types of factory built housing (i.e., modular, pre-fabricated or panelized) are eligible for the One Time Close program and must meet the requirements outlined in the Modular Housing policy and procedure(7-705).
NOTE: OTC transactions are NOT the same as a Construction to Perm transaction.  A Construction to Perm transaction is defined as when a borrower is converting an interim construction loan into a permanent mortgage.  This is considered a "two time close" transaction.

The One Time Close loan program has advantages for all parties involved:
General Contractor
  1. The loan is made to the Borrower.  This allows the General Contractor/Builder to use their interim financing for other properties.
  2. The borrower does not ave to go through the approval process again when the home is completed.  This eliminates the danger of job/career changes, additional debt, or buyers remorse causing a potential "spec" home.  Speculation is taken out of the project because the home is "pre-sold".
Realtor
  1. The realtor's commission is paid at closing, eliminating the wait until the construction is complete to be paid.
Borrower
  1. The construction and permanent phases are closed and ready for funding immediately by Peter Cook Mortgage.  The Borrower deals with Peter Cook Mortgage throughout the entire loan process.
  2. The Borrowers has the choice of using the PRIME PLUS products, FIXED RATE or a ARM option for the construction phase of the One Time Close loan option.
    • When using the PRIME PLUS options, the Borrower does not have to lock and may choose to float or use the Range Protector program.
    • When using the Fixed Rate or ARM option, the Borrower must lock the interest rate for the entire construction period.

    THESE OPTIONS REPRESENT TYPICAL PRICING OPTIONS; SEE YOUR PRICING SHEET FOR THOSE AVAILABLE IN YOUR AREA.

  3. Borrowers need not worry about going through the loan approval process at the time the home is completed.  This eliminates concerns of job/career changes or increasing debt.
    • EXCEPTION: If program at modification is different than program originally approved, then the loan must be reviewed for product compliance.
  4. Most fees for the construction portion of the loan and interest paid during the construction periods are tax deductible.
  5. The Borrower can finance up to 95% (90% if factory built housing - modular, pre-fabricated, or panelized) of the value of the home (program specifics apply).
  6. As there is only one closing, the Borrower saves the costs associated with title and appraisal fees on a two time closing.
  7. If the Borrower chooses the loan can be paid down at the modification date to lower the payment or eliminate the Mortgage Insurance requirement.
Closing Once credit underwriting and construction requirements have been met and closing is approved, final documents will be delivered to the closing agent within 48-hours.
Draw Requests Draws funded withing 72 hours of receipt of the draw request form, subject to an acceptable inspection of work requested and completed.
Final Draws and Modifications  When final draw request and required documents are received, the paperwork will be delivered to modify the construction loan to a permanent mortgage within 3-5 business days.
Phone Calls Any phone call received by 3:00 PM will be returned the same day.