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Key Highlights
The Benefits
One Closing
Simplify the financing process.
One Loan
Combine construction and permanent financing.
More Convenience
Avoid a second mortgage closing.
What's Required
Approved Builder
Builder requirements apply.
Construction Plans
Plans and budget are reviewed.
Mortgage Qualification
Borrower requirements apply.
The Ins & Outs
How it Works
A One-Time Close Construction Loan combines the financing for building a new home and the permanent mortgage into a single loan. Instead of completing separate closings for construction financing and your final mortgage, eligible borrowers can complete the process with one closing before construction begins.
One-Time Close financing may be available through conventional, FHA, VA, USDA, and other specialized programs depending on the lender. It's designed for borrowers building a primary residence and can simplify the financing process from construction through move-in.
Example Scenario
A homebuyer owns a residential lot and wants to build a custom home as their primary residence. Instead of obtaining a construction loan and later refinancing into a permanent mortgage, a One-Time Close loan combines both stages of financing into a single loan with one closing.
What is a One-Time Close Construction Loan?
A One-Time Close Construction Loan combines construction financing and the permanent mortgage into a single loan, allowing eligible borrowers to complete one closing before construction begins.
How is this different from a traditional construction loan?
Traditional construction financing may require a separate construction loan followed by permanent mortgage financing. A One-Time Close structure combines both stages into one loan.
Can I use a One-Time Close loan to buy land?
Depending on the program and lender, financing may be available for an eligible lot along with the construction of the home. Borrowers who already own their land may also have financing options.
What loan programs are available?
Depending on lender availability and borrower eligibility, One-Time Close financing may be offered through conventional, FHA, VA, USDA, or other specialized construction programs.
What happens after construction is finished?
Once construction is completed and applicable lender requirements are satisfied, the loan transitions into its permanent financing phase according to the terms established at closing.
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