OTC Toolkit

Make Your Home,

Your Way!

O N E -T I M E C L O S E TO O L B OX

Table of Contents 02

The One-Time Close Loan (OTC)

03

My Potential Home Checklist

05

My Contact Sheet

06

Scheduled Appointments Options for OTC Loans:

07

Conventional Loan & FHA Loan

08

VA Loan & USDA Loan

09

Comparing OTC Loan Options

11

Who Do I Need to Get Involved?

12

The Home Building Process From Start to Finish

13

Why Use New American Funding?

14

Notes

The One-Time Close Loan Our Solution to Your Problem With a One-Time Close (OTC) loan from New American Funding, the money you need to purchase your property, pay for home construction, and secure your mortgage is wrapped up in one single loan.

•

Our OTC loan combines the funds needed for property purchase, home construction, and mortgage into a single loan, streamlining the process.

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Whether you’re building a brand-new home or planning a custom build, our OTC loan is the perfect solution.

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If you’re considering tearing down an existing home and starting fresh, our OTC loan covers the entire construction process, including the foundation.

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Enjoy a 12-month construction phase.

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Benefit from only one appraisal and one closing, saving you time and money.

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Use gifts or land equity towards your down payment.

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Get a single approval for your loan, simplifying the process and reducing stress.

02

My Potential Home Checklist Date Seen: ______________ Agent: ____________________________ HOA: Y/N Address: _____________________________ Price: _________ Property Taxes: ____________ Seller: ___________________ Age of Home: ____________ Neighborhood: _____________ Style of home

Two Story Cape Cod

Type of construction:

Wood

Ranch Townhouse Brick

Split Level Condo

Stone

Stucco

Traditional Modular Vinyl

EXTERIOR FEATURES: Landscaping Yes No Fencing Yes No Porch Yes No Paint Yes No Patio Yes No Deck Yes No Garage 1 car 2 car 3 car 4 car Sidewalks Yes No Note: _______________________________________________________________________________ INTERIOR FEATURES: Kitchen Size: ___________________ Eat-in Yes No Flooring Vinyl Hardwood Appliances Stainless Black Stainless Cabinets Distressed Natural Windows Single Hung Double Hung Round Garden Dormer Glass Blocks Dining room Flooring Lighting Living room Flooring Lighting Fireplace

Den Flooring Lighting Fireplace

Tile All Black Glazed Casement Picture Egress

All White Painted Slider Jalousie

Concrete Cork Cabinet

Size: ____________________ Stone Ceramic Laminate Vinyl Recessed Track Wood burning Open Hearth Direct Vent Size:________________ Stone Ceramic Laminate Vinyl Recessed Track Wood burning Open Hearth Direct Vent

Size: ____________________ Stone Ceramic Laminate Vinyl Recessed Track

Contemporary Manufactured Aluminum

Detached

Stained Bay Skylight

UV Finish Arched Storm

Carpet Linoleum Chandelier

Hardwood

Tile

Concrete Cork Cabinet Wood Stove

Carpet Linoleum Chandelier Ventless

Hardwood

Tile

Ceiling Prefabricated

Ethanol

Concrete Cork Cabinet Wood Stove

Carpet Linoleum Chandelier Ventless

Hardwood

Tile

Ceiling Prefabricated

Ethanol

Ceiling

Basement Yes No Finished Carpet Hardwood Note: ____________________________________________________________________________

03

Tile

Prefab

Hallway Flooring

Stone Ceramic Concrete Laminate Vinyl Cork Linen closet Yes No Size________________ Note: ____________________________________________________________________ TOTAL BEDROOMS: 1 2 3 Master Bedroom Size: ______________________ Flooring Stone Ceramic Laminate Vinyl Closet Walk-in Standard Bedroom 2 Flooring Closet Bedroom 3 Flooring Closet

4

Carpet Linoleum

Hardwood Tile

5+

Concrete Carpet Cork Linoleum Size________________

Hardwood Tile

Size: ______________________ Stone Ceramic Laminate Vinyl Walk-in Standard

Concrete Carpet Cork Linoleum Size________________

Hardwood Tile

Size: ______________________ Stone Ceramic Laminate Vinyl Walk-in Standard

Concrete Carpet Cork Linoleum Size________________

Hardwood Tile

TOTAL BATHROOMS: 1 2 3 Master Bath Size: ______________________ Flooring Stone Ceramic Laminate Vinyl Tub Yes No Lighting Recessed Track

4

5+

Concrete Cork

Carpet Linoleum

Cabinet

Ceiling

Guest Bath Flooring

Size: ______________________ Stone Ceramic Concrete Carpet Laminate Vinyl Cork Linoleum Tub Yes No Lighting Recessed Track Cabinet Ceiling Note: ___________________________________________________________________________

Hardwood Tile

Hardwood Tile

Laundry room Location: ___________________ Washer/Dryer Stackable Top Load Front Load Note: ____________________________________________________________________________ MECHANICALS: Type of heating Hot water Gas Electric Oil Insulation Fiberglass Cellulose Foam None Central Air Yes No Plumbing Condition Good Fair Poor Sump pump/drainage system Yes No Connected to sewer system Yes No Capacity of water heater: _____________ Note: ____________________________________________________________________________ EASY ACCESS TO:

Work Schools Houses of worship

Shopping Train station

Airport Area Industry Public transportation Doctors

Highways Dentists

04

My Contact Sheet For your construction questions, contact the NEW AMERICAN FUNDING CONSTRUCTION DEPARTMENT: Email: constructionspecialist @nafinc.com Toll Free Office Number: 1-949-565-4771

LOAN OFFICER:

Email:

Office:

Cell:

Assistant:

Email:

Office:

Cell:

Note:

REAL ESTATE AGENT:

Email:

Office:

Cell:

Assistant:

Email:

Office:

Cell:

Note: NOTE: General Contractor strongly preferred, however if no GC, maximum of 3 contractors allowed

GENERAL CONTRACTOR:

Email:

Office:

Cell:

Assistant:

Email:

Office:

Cell:

Note:

BUILDER:

Email:

Office:

Cell:

Assistant:

Email:

Office:

Cell:

Note:

MANUFACTURER:

Email:

Office:

Cell:

Assistant:

Email:

Office:

Cell:

Note:

DRAW ANALYST:

Email:

Office:

Cell:

Assistant:

Email:

Office:

Cell:

Note:

05

Schedule Appointments

MONTH: SUNDAY

MONDAY

TUESDAY

WEDNESDAY

THURSDAY

FRIDAY

SATURDAY

06

Conventional Loan Designed to provide flexibility and affordability, our conventional mortgage options are tailored to meet the unique needs of both you and your clients!

Highlights

Eligible Properties

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Credit score as low as 680

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Single family detached homes

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Minimum down payment of 5% (primary home)

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Modular homes

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Minimum down payment of 10% (secondary home)

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Prefabs

•

•

Conforming loan limits apply

Single, Double, Multi-wide manufactured homes

FHA Loan Our acquisition cost package covers all the essential elements, ensuring a seamless and hassle-free process. The builder’s price to build, combined with the cost of the land, forms the foundation of this cost. For those considering manufactured housing, our package covers the cost of the unit and all on-site installation expenses.

Highlights

07

Eligible Properties

•

Credit score as low as 620

•

Single family detached homes

•

Minimum down payment of 3.5%

•

Modular homes

•

FHA loan limits apply

•

Prefabs

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10% down payment required for credit score 619 - 580

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Single, Double, Multi-wide manufactured homes

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Fixed and Adjustable-rate options

VA Loan Honor our courageous veterans and active service members by providing the financial assistance opportunities they need with VA loans.

Highlights

Eligible Properties

•

Credit score as low as 620

•

Single family detached homes

•

No down payment required

•

Modular homes

•

Lender loan limits apply

•

Prefabs

•

10% down payment required for credit score 619 - 580

•

Single, Double, Multi-wide manufactured homes

•

Fixed and Adjustable-rate options

USDA Loan USDA provides a wide range of benefits and flexible eligibility criteria creating more homeownership opportunities in rural areas.

Highlights

Eligible Properties

•

Credit score as low as 640

•

Single family detached homes

•

No down payment required

•

Modular homes

•

Primary residence

•

Prefabs

•

Single, Double, Multi-wide manufactured homes

08

Comparing OTC Loan Options Conventional

FHA

Max LTV 95%

Max LTV 96.5%

Minimum Credit Score 680

Minimum Credit Score 620

Eligible Terms

10, 15, 20, 25, and 30-year fully amortized fixed

10, 15, 20, 25, and 30-year fully amortized fixed Fixed and Adjustable-rate options

Eligible Property Types

1-unit site-built

1-unit site-built

Modular

Modular

Prefab

Prefab

MFH- single, double, multi-wide ADU (as permitted by local zoning authority)

MFH- single, double, multi-wide ADU (as permitted by local zoning authority)

Yes

Yes

Up to 12% of cost to build or $50k (whichever is less)

Up to 10% of cost to build or $50k (whichever is less)

Yes

Yes

Owner-occupied and second home (conventional only)

Owner-occupied only

Financing Eligibility

Option for Initial Draw at Closing Draw Paid to Builder Occupancy

Lot Equity and Use Toward Construction for One-time Close Transaction Property Type

All eligible property types

Manufactured home Modular Site-built

Equity Contribution Lot Ownership / Seasoning for LTV

09

Yes

Yes

Limited cash-out refinance (LCOR), no cash back to borrower

Land value if owned < 6 months at case assignment = Lesser of the cost of the land or appraised site value of the land

The borrower is the owner of record of the lot at the time of the initial loan application

Land value if owned > 6 months = Appraised site value of the land

ss)

VA

USDA

Max LTV 100%, not including VA funding fee

Max LTV 100%

Minimum Credit Score 620

Minimum Credit Score 640

10, 15, 20, 25, and 30-year fully amortized fixed Fixed and Adjustable-rate options

30-year fully amortized fixed

1-unit site-built

1-unit site-built

Modular

Modular

Prefab

Prefab

MFH- single, double, multi-wide ADU (as permitted by local zoning authority)

MFH- single, double, multi-wide ADU (as permitted by local zoning authority)

Yes

Yes

Up to 10% of cost to build or $50k (whichever is less)

10% of cost to build or $50K (whichever is less) and building permit required before closing

Yes

Yes

Owner-occupied only

Owner-occupied only

Lot Equity and Use Toward Construction for One-time Close Transaction Manufactured home

Manufactured home

Modular

Modular

Site-built

Site-built

Yes

Yes

Land value if owned < 12 months at case assignment = Lesser of the cost of the land or appraised site value of the land

No lot seasoning, but borrower must be owner of record at time of application

Land value if owned > 12 months = Appraised site value of the land

LTV based on appraised value

No cash back allowed

10

Who Do I Need to Get Involved?

The Loan Officer NAF’s primary responsibility is to authorize the construction draw disbursement. NAF does not warrant that the project will be completed within the budget or to the standards or expectations of the borrower.

NAF will do everything possible to help its valued customers with any questions or concerns.

The Builder The builder is responsible for overseeing and managing the construction project and ensuring that it is completed, as specified in the original construction contract. If work stops for an extended period of time, or there are problems with the work performed that may cause significant delays, both Land Gorilla and the lender must be notified by either the borrower or builder. The borrower signature is required on each draw disbursement requested from the builder.

The NAF OTC Department The NAF construction to perm (CP) team is dedicated to giving our customers the best experience, and it starts by making sure our customers have the information and resources, of the CP loan process from start to finish. The NAF CP Team is responsible for managing the construction loan throughout the entire construction phase.

11

Your

Home Building Process Starts Here

Are you considering building your dream home but unsure where to begin? We can take you through the process one step at a time and you might find that it is far easier than you imagined!

STEP 1: Get pre-approved for a home loan

A pre-approval shows you how much you can afford so you can narrow down your home search.

Find your builder to build your dream home

Submit all required loan documents

Provide builder with the new builder package

Appraisal ordered. Total acquisition cost (lot & build)

Start lot hunting with your Real Estate Agent

Executed plans, specs and build contract, submitted

Make an offer on your lot

Negotiate price and terms for your lot

MOVE IN! Obtain final loan approval & clear to close from lender

Sign loan and closing docs

Construction begins on your dream home

12

Why Use New American Funding?

NAF has a Construction Department: NAF’s primary responsibility is to authorize the construction draw disbursement. NAF does not warrant that the project will be completed within the budget or to the standards or expectations of the borrower.

NAF will do everything possible to help its valued customers with any questions or concerns.

We’re here to help every step of the way: Our Construction Department has a team in place to assist with loan set-up, pre-disclosure review, appraisal order, contractor approval, and document and underwriting preparation.

We're house experts: The experts in the Construction Department have the knowledge to help resolve complex borrower and contractor situations and provide guidance for difficult property scenarios.

It’s not over until the builder gets paid: The Construction Department will continue to work internally with the builders to ensure they are paid in a timely manner.

13

Notes

14

Let’s Connect!

Spencer Patton Loan Consultant NMLS# 2584231

Let's Connect!

618.339.1047 Spencer@217Mortgage.com AgentFullName NAF.com/SpencerPatton Title

[[CellPhoneNumber]] [[SecondPhoneNumber]] AgentEmail AgentWebsite

Licensed by the Department of Financial and Professional Regulation, Mortgage Banking Division, 100 West Rudolph, 9th Floor, Chicago, IL, 60601, (888) 473-4858 Equal Housing Opportunity. This is not a loan commitment or guarantee of any kind. Terms and conditions apply. Subject to borrower and property qualifications. Not all applicants will qualify. Rates and terms are subject to change without notice. All mortgage loan products are subject to credit and property approval. Appraisal may be required in some cases. For more information, visit: https://www.benefits.va.gov/homeloans/index.asp. Nontraditional credit references, such as rental and utility payments, may be used to validate a current score or to provide credit references when no score exists. ©️ New American Funding, LLC. NMLS #6606. nmlsconsumeraccess.org.

Corporate office, 14511 Myford Rd., Ste 100, Tustin, CA 92780. Phone: (800) 450-2010. 7/25