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One-Time Close is for homebuyers building their primary residence. It combines construction and permanent financing into one loan with one closing—you end up with a standard mortgage at the end. Ground-Up Construction financing is for builders and investors, and is short-term, asset-based, and repaid when the property sells or is refinanced.

Minimum FICO scores start at 620 for FHA and VA (650 for double-wide manufactured homes), 650 for USDA, and 680 for Conventional. Down payment varies by program—VA and USDA offer $0 down, FHA starts at 3.5%, and Conventional starts at 10% (or as low as 5% with qualifying compensating factors). Eligible veterans will typically find VA OTC to be the strongest option available.

Conventional OTC can go to 95% LTV (5% down) if specific compensating factors are met: your current home must have substantial equity, it will be sold upon completion of new construction, and the equity from that sale will be applied to the OTC loan balance. Reach out and we’ll walk through whether your situation qualifies.

Yes—with Conventional OTC only. Barndominium properties are not eligible under VA, FHA, or USDA OTC programs. For Conventional, specific overlays must be met including AUS approval, owner-occupancy, construction type (steel or post-beam frame, concrete slab, min 70% livable space), comparable sales within 5–10 miles, and no agricultural land classification. See the full overlay grid above or contact us to discuss your project before committing to a plan.

Not currently—bank statement (non-QM) qualifying isn’t available on our One-Time Close programs right now because there are no private investors currently funding OTC loans, and non-QM programs depend on that private capital. If bank statements are your only path to qualifying, reach out anyway. There are often creative ways to structure a build around that—we’d rather talk through the options with you than have you rule it out before asking.

Funds are released to your builder in draws tied to completed construction milestones. An independent inspector verifies the work before each draw goes out—protecting both you and the project.

Yes—your general contractor must be registered with our construction lending partner before closing. It’s a one-time process. Email us at info@professorlending.com and we’ll guide your builder through it. Required registration documents include:

• Completed builder/retailer application
• Contractor’s Performance Agreement
• Builder’s/Retailer’s license(s) (contractor, retailer, installer, as applicable)
• Certificate of Insurance—General Liability (Acord 25 Form, minimum $1,000,000 per occurrence)
• Certificate of Insurance—Worker’s Compensation (or explanation if not required)
• Builder’s Risk Insurance (required per project—standalone or combined with borrower’s HOI)
• Site-Built Builders: Most recent 2 years federal tax returns, YTD P&L, current company balance sheet
• Site-Built Builders: Executive summary of company experience and principals
• VA Loans: VA Builder Registration confirmation and VA Builder ID number

No. While spec homes are common, this program also covers custom builds, investment and rental properties, and multi-lot developments. Approval is based on the project and your asset profile, not the type of buyer the home is ultimately built for.

No. No W-2s, tax returns, paystubs, or anything similar. Approval is based on the project—your asset profile and the strength of the build plan. This makes it particularly well-suited for self-employed builders and investors whose tax returns don’t reflect actual financial strength.

Up to 85% of the purchase price plus total construction costs, including up to 100% of all hard construction costs. Loan amounts range from $150,000 to $10,000,000—covering single homes through larger multi-lot development projects.

Funds are released in draw schedules tied to completed construction milestones. An inspector verifies work before each draw is released, protecting both you and the lender.