True Blue Lending

Residential · Calculator

One-Time Close C2P

FHA, VA, or Conventional construction-to-perm sizing in one view. Final contract price, base loan, financed UFMIP or funding fee, cash to close, and permanent monthly payment.

FHA Forward 203(b) construction-to-perm. 96.5% LTV on 1-4 unit owner-occupied. Single closing, auto-modifies to a 30-year fixed at certificate of occupancy. UFMIP 1.75% can be financed; annual MIP applies.

Project

Builder/retailer contract price for the home itself.

Site work, well, septic, driveway, etc. Set to $0 if rolled into the base price.

Existing lot loan to pay off at close. $0 if free + clear.

Build period before mod to permanent.

Construction Financing

Construction admin, inspection, feasibility fees. Typical range $5k–$10k.

Variable-rate during build. Typically prime + 2-3 pts. Click N Close 10.95% reference.

Estimated construction interest below is based on the average outstanding balance over the build period. Actual interest accrues against funds disbursed, so it depends on draw schedule.

Permanent Loan

Months. 360 = 30-year fixed.

1.75% UFMIP can be financed on top of the base loan.

Typical: 0.55% for 96.5% LTV / 30-year.

Closing Costs & Credits

Lender, title, recording, etc. (excluding upfront fee + prepaids).

Tax + insurance reserves + per diem interest.

Credits toward borrower's CCs. Capped per program (FHA 6%, Conv 3-9% by occupancy/LTV).

If the borrower already owns the lot free + clear, the land's appraised value (less any payoff) is equity.

Permanent Period Escrows

$0 if not in a flood zone.

Total Loan Amount

$431,652

Base Loan $424,228 · Financed UFMIP $7,424 · LTV 96.50%

Cash to Close$38,386From borrower at close
Total Monthly$3,809.13PITI + MI
UFMIP$7,4241.75% of base loan

1003 Section VII — Details of Transaction

a.Purchase Price$439,614
b.Alterations / improvements / repairs$0
c.Land (if acquired separately)$0
d.Refinance$0
e.Estimated Prepaid Items$8,000
f.Estimated Closing Costs$15,000
g.UFMIP (1.75%)$7,424
h.Discount points$0
i.Total Costs$470,038
j.Subordinate Financing$0
k.CC paid by Land Seller$0
l.Other Credits (concessions + equity + trade-in + deposit)$0
m.Base Loan Amount$424,228
n.UFMIP financed$7,424
o.Total Loan Amount$431,652
p.Cash from Borrower$38,386

Retailer Contract Breakdown

Base Home Sales Price$420,000
Cost of Improvements$0
Builder Closing Costs$0
Builder Contribution to Buyer's CCs/Prepaids$0
Construction Soft Costs$8,300
Estimated Construction Interest$11,816
= Final Contract Price$439,614
+ Land Payoff$0
= Total Acquisition Cost$439,614

Construction interest is estimated at average outstanding balance: loan × rate × months / 24. Actual interest accrues against funds disbursed and varies by draw schedule.

Estimated Monthly Payment (Permanent Period)

Principal & Interest$2,944.63
FHA MIP$197.84
Property Taxes$416.67
Hazard Insurance$250.00
Total Monthly Payment$3,809.13
For mortgage professional use only. This is not a construction loan approval or a Loan Estimate. All figures are estimates based on the inputs above and are subject to actual underwriting, appraisal, and lender overlays. Construction interest accrues against funds disbursed. True Blue Lending Corporation NMLS #2380218 · Jesse Gonzalez NMLS #278103 · Equal Housing Opportunity.

Frequently asked

About this calculator.

What is a one-time close construction loan?

One-time close (also called single-close or construction-to-perm) is a single closing that finances both the build and the permanent mortgage. At certificate of occupancy the loan auto-modifies to a 30-year fixed without a second closing or second appraisal. Compares favorably to two-close construction loans where the borrower pays closing costs twice.

How is FHA OTC different from VA or Conventional?

FHA OTC: 96.5% LTV on 1-4 unit owner-occupied, UFMIP 1.75% upfront plus annual MIP, primary residence only. VA OTC: up to 100% LTV for full-entitlement borrowers, no down payment, funding fee can be financed (or waived for disability), 1-4 unit owner-occupied. Conventional OTC: standard Fannie Mae LTV matrix (95% primary 1-unit, 85% primary 2-unit, etc.), available for primary residence, second home, or investment property, PMI applies above 80% LTV.

How does the construction interest estimate work?

Construction interest is calculated on the average outstanding balance over the build period: loan amount × construction rate × months / 24. Construction draws are staggered, so the average balance is roughly half of the final loan amount. Actual interest accrues against funds disbursed and depends on the draw schedule. The estimate above is a sizing tool, not a payment commitment.

Can I roll the UFMIP or VA funding fee into the loan?

Yes. FHA UFMIP (1.75% of base loan) is almost always financed on top of the base loan amount. VA funding fee (2.15% first use 0% down, lower for larger down payments, 0% for disability waiver) can also be financed. The toggle in the calculator shows you both scenarios.

What is the difference between Loan-to-Cost and Loan-to-Value?

On a one-time close C2P, the appraised value is established by an "as completed" appraisal that reviews the building plans, specifications, and site value. The total acquisition cost (final contract price + land payoff) is what the loan is sized against. For most OTC scenarios, LTC and LTV move together because the appraised value targets the total acquisition cost. If the appraisal comes in lower, the loan is sized against the appraised value.

Can I use OTC if I already own the lot?

Yes. If the lot is owned free and clear, the appraised land value is treated as borrower equity that reduces cash to close. If there is an existing lot loan, the payoff amount is added to the total acquisition cost and the new OTC loan pays it off at closing. Both scenarios are common.

What about USDA OTC?

USDA Rural Development single-close construction loans exist (similar structure: 100% LTV, 1% guarantee fee + 0.35% annual). They are limited to USDA-eligible rural addresses. Currently this calculator covers FHA, VA, and Conventional. For USDA OTC scenarios, contact us directly.

Custom build or manufactured-home OTC

One-time close, one closing, one rate.

FHA, VA, Conventional, and USDA OTC programs. Single closing finances the lot and the build, auto-modifies to a 30-year fixed at certificate of occupancy. Send us the build plans and the lot details, we'll size the right program and lock the rate.

Prefer to talk first? Call (707) 583-3666