One closing from construction to permanent financing
One-time close construction loans are designed to combine construction financing and the permanent mortgage in a single closing. This can reduce the complexity, duplicate closing steps and uncertainty associated with arranging separate construction and permanent loans.
Eligible programs may allow the permanent interest rate to be locked before construction begins. During the construction phase, payments may be interest-only and based on the amount of loan funds that have actually been disbursed. After the home is completed and all lender requirements are satisfied, the loan converts to its permanent mortgage terms.
Build your dream home without the multi-loan hassle. Available rate-lock periods, construction-payment calculations, conversion features, builder approval, inspections, draw schedules and permanent loan terms vary by lender and program.
What to know
One-time close construction loans may combine construction financing and permanent mortgage financing through one closing. During construction, payments may be interest-only on funds already disbursed. After completion and satisfaction of program requirements, the loan converts to its permanent mortgage phase.
Start with a conversation
Tell me where the property is, how you plan to use it and what you want the loan to accomplish. I can help you understand which details lenders will review and compare available paths.
What is a one-time close construction loan?
A one-time close construction loan combines eligible construction and permanent financing in one transaction. Rate-lock options, payment structure, conversion terms, builder approval and project requirements depend on the selected lender and program.