One-time close construction-to-permanent loans combine your construction financing and permanent mortgage into a single transaction. One application, one approval, one set of closing costs — from groundbreak to move-in.
The traditional approach to building a home requires two loans: a short-term construction loan to fund the build, then a permanent mortgage once the certificate of occupancy is issued. That means two applications, two appraisals, two sets of closing costs, and a re-qualification at the end — at whatever rates exist when construction finishes.
One-time close construction loans eliminate the second transaction entirely. You lock your permanent rate and terms at the start, before a single nail is driven. The loan converts automatically from construction to permanent financing when your home is complete — no re-qualification, no second closing, no rate uncertainty.
During construction, you pay interest only on the funds drawn — not the full loan amount. Once complete, the loan converts to your permanent mortgage on the terms locked at closing.
Your licensed general contractor, construction plans, and budget are submitted for lender approval. We advise on what documentation builders need to prepare upfront.
You close once — before construction begins. Your permanent rate and terms are locked at this closing. Interest-only payments begin on disbursed funds.
Funds are released in draws tied to construction milestones — foundation, framing, rough-in, drywall, completion. Inspections required before each draw release.
The lender orders periodic inspections to verify work completed before releasing each draw. Your contractor bills against the draw schedule as work progresses.
When construction is complete and the CO is issued, the loan automatically converts to permanent financing. No new application, no re-qualification, no second closing.
Two primary one-time close programs — each with different qualification thresholds, loan limits, and down payment requirements.
Fannie Mae guidelines. Conforming and high-balance loan amounts. Typically 5–10% down for primary residence. No mortgage insurance at 20%+ down. Best for strong credit and income profiles.
FHA-insured construction-to-permanent loan. 3.5% down with 580+ credit score. MIP applies. Best for buyers with lower down payment or less-than-perfect credit building their primary residence.
If you don't yet own the lot, some programs allow you to finance the land purchase and construction simultaneously in the same one-time close transaction.
Working with your own architect and general contractor to build from your own plans. The lender approves your contractor and plans — you manage the build.
Buying from a builder who allows customization of plans and finishes. One-time close financing works with most licensed Florida builders.
Conventional one-time close programs are available for second home construction — not just primary residences. Slightly higher down payment requirements apply.
Construction loan programs, requirements, and guidelines vary by lender. All loans subject to underwriting and lender approval. Not a commitment to lend.
Alex reviews every file personally. Schedule a call and get direct answers.
Construction loans require early planning. Book a strategy call now and Alex will walk you through what lenders need — before your builder breaks ground.