A One-Time Close Construction Loan can help qualified buyers finance the land, construction, and permanent mortgage through one streamlined loan process.
Instead of getting one loan for the construction phase and another loan after the home is complete, a One-Time Close loan is designed to combine the construction financing and permanent mortgage into one closing.
Simplified construction financing
A One-Time Close Construction Loan can make the homebuilding process easier to understand by combining key financing steps into a single construction-to-permanent mortgage structure.
Once the loan closes, construction funds are typically released through scheduled draws as the home is built. After construction is complete, the loan transitions into the permanent mortgage.
This option may be a strong fit when you want a new home built to your needs and want mortgage guidance before you go too far into builder conversations.
Construction loans can feel more complicated than a standard purchase loan. The right structure can help give you a clearer roadmap from lot selection to completed home.
Close once at the beginning of the process instead of setting up separate construction and permanent mortgage closings.
The loan is designed to cover the construction phase and then transition into your long-term mortgage.
Reviewing the loan, land, builder, and construction budget upfront can help reduce surprises later.
The exact requirements depend on the loan program, property type, builder, borrower profile, investor guidelines, and construction details.
We look at your credit, income, assets, land situation, estimated budget, and homebuilding goals.
The lender reviews the builder, plans, specs, contract, cost breakdown, and property details.
Once approved, the loan closes before construction begins and the construction phase can start.
Funds are typically released in scheduled draws as work is completed and inspected.
Final inspections and completion documentation are handled when the home is finished.
The loan transitions into the long-term mortgage according to the approved loan structure.
Construction lending requires more documentation than a typical home purchase because both the borrower and the construction project must be reviewed.
Depending on your scenario, construction-to-permanent financing may be available through different loan types.
FHA construction options may be helpful for qualified borrowers who need flexible credit or down payment guidelines.
VA construction financing may be available for eligible veterans, service members, and qualifying spouses.
USDA options may be available in eligible rural and outlying areas for qualified borrowers and properties.
Conventional construction-to-permanent options may work for borrowers with stronger credit, income, and asset profiles.
If you already own land, your current land ownership and equity may be reviewed as part of the loan structure.
Builder eligibility, plans, specs, and construction costs are all important pieces of the approval process.
Let’s review your budget, land situation, builder plan, and loan options before you get too far into the process.
Common questions buyers ask when comparing construction financing options.
No. A regular mortgage usually finances an existing completed home. A One-Time Close Construction Loan is designed to finance the construction phase and then transition into permanent mortgage financing after the home is complete.
Possibly. If you already own the lot, the land may be factored into the transaction depending on the loan program, equity position, title, and guideline requirements.
Usually, yes. The builder, construction contract, plans, specifications, and cost breakdown are important parts of the approval process.
Availability depends on lender and investor guidelines. Different construction-to-permanent options may exist under FHA, VA, USDA, and conventional programs, but requirements vary.
It depends on your situation. A One-Time Close loan can simplify the process, but the best option depends on your credit profile, down payment, land ownership, builder, project timeline, and long-term mortgage goals.
Important: This page is for general educational purposes only. Construction loan availability, loan terms, interest rates, down payment requirements, builder eligibility, property eligibility, and documentation requirements vary by program, lender, investor, and borrower qualifications. This is not a commitment to lend. All loans are subject to credit approval, underwriting approval, program guidelines, and property eligibility.