One Time Close Funding or 100% LTV Funding (PR)

Houston, Texas
Private Lending & Conventional Mortgage Advice
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One Time Close Funding or 100% LTV Funding (PR)

Deonte Hill
Houston, TX · Member since 2021 · 22 posts · 15 votes

Good afternoon all,

I am currently exploring 2 options right now which are:

A: Purchase a lot and build a duplex/triplex using a one time close; or

B: Purchase a property that'd be my primary residence and needs roughly $150k in renovations + build of an ADU to rent out.




As such, I am looking for a lender/partner that will fund a one time close or fund a 100% LTV mortgage. Any recommendations would be appreciated. Thanks!

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  • Richard Mark
    Lender · San Francisco Bay Area · Member since 2025 · 11 posts · 11 votes
    1y

    Hey Deonte. Speaking from a hard/private money perspective, its uncommon for any lender to do a 100% LTV loan for borrowers, let alone a borrower they haven't worked with before. It would require you putting up additional real estate to collateralize. That said, if the property is habitable and your documents are all in order, its not impossible that you could get a portfolio loan from a more traditional lender that could provide the cash needed. Yet again, you will need to have other assets to collateralize or at least some cash to put up front. As you know there are tons of lenders with different programs who might be able to get creative with you to make something work.

    0Reply
  • Deborah Wodell
    Lender · Sanford, NC · Member since 2024 · 348 posts · 116 votes
    1y

    Hi Deonte,
    For both scenarios you're considering, lenders will typically require some form of down payment or equity—100% LTV is extremely rare unless it's a very unique relationship or cross-collateralized deal.

    For option A (lot + build):
    A one-time close construction-to-perm loan is possible, but most lenders will want at least 20-30% down based on total project costs. They'll want detailed plans, permits, a licensed builder, and strong borrower financials.

    For option B (primary + heavy reno + ADU):
    You might consider an FHA 203k or Fannie Mae Homestyle loan if you're living in the property, but $150k in renovations + new ADU may exceed most primary residence renovation loan limits. You could explore combining a conventional mortgage with a renovation loan or using your own funds for part of the work.

    Either way, the more experienced and financially prepared you are, the better your terms will be.

    0Reply
  • Patrick Roberts
    Lender · Charleston, SC · Member since 2019 · 1k+ posts · 1k+ votes
    1y

    100% financing doesnt exist for what you're looking for.

    0Reply
  • Elias HalvorsonBusiness Member
    HI · Member since 2024 · 225 posts · 130 votes
    1y

    Hi Deonte, 

    Are you a veteran? If not, completely agree with Patrick - you have 0% chance of getting 100% financing. Even the cross-collateralization method would typically still require some down payment. Not trying to be rude, just want to be clear so you don't waste your time searching. 

    808-517-6416
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  • Nick BelskyBusiness Member
    Residential and Commercial Broker · Member since 2021 · 1k+ posts · 704 votes
    1y

    @Deonte Hill

    The only way you will get 100% financing for an OTC is if you are vet.  If not, you'd need to have at least two completed builds in the past 2 years AND were on title (even then, this lender would only do as an investment, not as a primary).  

    Purchasing an existing structure and adding an ADU or renovating is becoming all too easy these days. You can use a conventional based or FHA based loan to do this. If you are unsure of specifics, you should speak with a mortgage broker who can dig into your specific details and help determine what you may qualify for.

    Cheers!

    [email protected]
    Belsky Mortgage, LLC527 Reviews
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    • Deonte Hill
      OP
      Houston, TX · Member since 2021 · 22 posts · 15 votes
      1y
      Quote from @Nick Belsky:

      @Deonte Hill

      The only way you will get 100% financing for an OTC is if you are vet.  If not, you'd need to have at least two completed builds in the past 2 years AND were on title (even then, this lender would only do as an investment, not as a primary).  

      Purchasing an existing structure and adding an ADU or renovating is becoming all too easy these days. You can use a conventional based or FHA based loan to do this. If you are unsure of specifics, you should speak with a mortgage broker who can dig into your specific details and help determine what you may qualify for.

      Cheers!


      Hi Nick, I am a vet and will be using my VA loan.

      0Reply
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