Select one of our lending areas:
Product Questions and Answers
- What are the differences between 2TC (two-time close) and OTC (one-time close)?
-
On an OTC transaction, the long term mortgage is closed at the same time as the
construction loan is closed. The long term rate is often also locked
in before construction starts. Because the long term loan is closed, a lot of
flexibility of the two-time close is lost, such as extensions of time and loan
amount in case of cost overruns.
For a one-time close, because two loans are closed up front, the time it takes
to close this transaction is longer than a two-time close. They are also
usually harder to qualify for because the long-term portion is often sold in the
secondary market.
Construction Capital offers a Two-Time Close (2TC) product.
- Can I close a loan with no money down?
-
There are 3 ways of doing a loan with no money down:
- EquityBuilder 2TC Product A—Allows 100% of cost, up to 85% of appraisal, and up to $500,000.
- High LTV 2TC—Allows 100% of cost and 95% of appraisal with Full Doc, up to $525,000.
- What product gives the best rates for the A++ borrower?
- The EquityBuilder Product F has the best construction rate—Prime + 0.00%
- What are the guidelines on Stated Income Loans?
-
We are not currently offering stated income loans.
- Do you have an Alt A or B paper product?
- No. All loans need to meet A paper approval criteria.
- What is the difference between LTV and LTC? When do they apply?
-
LTV is loan-to-value and LTC is loan-to-acquisition cost. Depending on the
product, there will be LTV and/or LTC requirements that must be met.
- Are exceptions granted for loans that don’t meet the guidelines?
- Yes, on a case-by-case basis.
- What happens when the home is completed?
-
A final 442 Inspection is ordered to make sure the home is complete,
the borrowers sign the modification documents, escrow accounts are set up,
and the construction loan transitions to the long term loan.
This product information may be changed at any time and is intended exclusively
for CCS-approved mortgage brokers.