The new program can be changed to a conventional mortgage after construction
American Financial Resources has announced that it now offers permanent financing for new stick-built or manufactured homes.
AFR said its conventional one-time close (OTC) program would convert to a standard conventional mortgage once construction is finished. This offering could help qualified prospective buyers to secure loans to finance the house and lot, as well as any necessary site improvements.
"The AFR Conventional OTC program has a number of advantages compared to other single-close construction-to-permanent loan programs," said Bill Packer, executive vice president and chief operating officer of American Financial Resources. "AFR is proud to add to our growing roster of differentiated programs."
Borrowers can use the AFR Conventional OTC program with 15-, 20-, or 30-year fixed mortgages and programs like the Freddie Mac Home Possible program.
"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; 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," Packer said. "We've applied our decade of experience in simplifying the lending process to focus on our newly updated Conventional OTC program, un-complicating the process for consumers as well as our lending partners while continuing to fulfill our mission of bringing families home."
