Build it once.
Close once.
Construction-to-permanent loans are designed to combine your construction financing and permanent mortgage. Depending on the program and lender, this may mean a single closing, or separate construction and permanent phases — structures vary.
Buyers building a new home who want simplicity from start to finish.
One loan. Two phases.
Zero double-closing.
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-to-permanent structures are designed to eliminate the second transaction, but the exact process — single close versus separate phases, re-qualification, closing costs, and rate-lock terms — varies by lender and program.
During construction, interest is generally charged only on funds drawn — not the full loan amount, subject to the selected program's terms. Once complete, the loan may convert to permanent mortgage financing on the terms established for that program.
Builder and plans approval
Your licensed general contractor, construction plans, and budget are submitted for lender approval. We advise on what documentation builders need to prepare upfront.
Closing and rate lock
Depending on the program, closing may occur once before construction begins, with the permanent rate and terms locked at that time — or in separate construction and permanent closings. Structure and lock terms vary by lender.
Draw schedule during construction
Funds are released in draws tied to construction milestones — foundation, framing, rough-in, drywall, completion. Inspections required before each draw release. Draw controls and requirements are set by the lender.
Construction inspections
The lender orders periodic inspections to verify work completed before releasing each draw. Your contractor submits draw requests as work progresses.
Conversion at certificate of occupancy
When construction is complete and the CO is issued, the loan is designed to convert to permanent financing. Some one-time-close programs avoid a second closing and re-qualification; structures vary by lender.
Conventional or FHA —
built for your situation.
Two primary one-time close programs — each with different qualification thresholds, loan limits, and down payment requirements.
Conventional One-Time Close
Fannie Mae guidelines. Conforming and high-balance loan amounts. Down payment and mortgage insurance requirements depend on occupancy, credit, and lender program.
FHA One-Time Close
FHA-insured construction-to-permanent loan. Down payment and credit score requirements are set by FHA and lender overlays. MIP applies. May suit buyers seeking a lower minimum down payment.
Lot + Construction Financing
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.
Custom Home Builds
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.
Builder Spec & Semi-Custom
Buying from a builder who allows customization of plans and finishes. One-time close financing works with most licensed Florida builders.
Second Home Construction
Conventional one-time close programs are available for second home construction — not just primary residences. Down payment requirements are typically higher than for a primary residence, subject to lender guidelines.
Program DetailsWhat to expect.
Loan Amounts
- Conventional: up to conforming / high-balance limits
- FHA: up to FHA county limits
- Jumbo construction available through select lenders
Down Payment
- Varies by program (conventional vs. FHA), occupancy, and lender
- FHA generally allows a lower minimum down payment for qualifying credit
- Land equity may count toward the down payment, subject to lender review
Construction Period
- Construction period length varies by project scope and lender
- Interest during construction is typically charged on drawn funds only
- Extensions may be available, subject to lender approval
Builder Requirements
- Licensed Florida general contractor generally required
- Builder must be approved by the lender
- Fixed-price contract required for most programs
Credit Requirements
- Minimum credit score requirements vary by program and lender overlay
- Better pricing is generally available at higher credit scores
- Reserve requirements are typically higher than for standard purchase loans
Rate Lock
- Some one-time-close programs allow the permanent rate to lock before construction begins
- Lock periods, extensions, and float-down options vary by lender
- Rate-lock structure should be confirmed for the specific program selected
Construction loan programs, requirements, and guidelines vary by lender. All loans subject to underwriting and lender approval. Not a commitment to lend.
Frequently Asked Questions
Have questions about this program?
Alex reviews every file personally. Schedule a call and get direct answers.
From groundbreak
to move-in.
Construction loans require early planning. Book a strategy call now and Alex will walk you through what lenders need — before your builder breaks ground.