Loan Programs

Construction Loans

One-time close construction: you close up front, the build runs on draws, then after the final appraisal you modify into permanent financing at market rates. Conventional, FHA, USDA, VA, and investor options.

Construction-to-Permanent & One-Time Close

A construction loan covers the cost to build or finish a home before a normal purchase mortgage on a completed house exists. Money is released in draws as stages are completed (foundation, framing, dry-in, finish) after the lender checks progress against your budget.

Construction-to-permanent is the broad idea: the loan is meant to end in long-term financing after construction. People use that phrase for different structures, so it helps to be specific.

One-time close is what many borrowers want: you close once up front, construction starts, and you draw as you go. When construction is complete and the final appraisal is done, you enter a modification period to update the loan into permanent financing at current market rates. You are not doing a full second home purchase closing the way you would on a resale. The permanent rate and payment are tied to that modification timing and the market then.

I have one-time close products across conventional, FHA, USDA, and VA so we can match agency or conventional guidelines to your situation. For investors, I also work with investor-focused construction lenders when the project is a fit (different rules than owner-occupied agency loans).

Stand-alone construction loans with a separate take-out refinance still exist if that structure works better. As a broker, I compare lenders, overlays, and how each program handles your builder, timeline, and long-term rate strategy.

Key Benefits

Staged Draws

Pay for work as it is completed and inspected, so you are not funding the entire project on day one.

One-Time Close, Then Modify

Close once up front, build with draws, then after the final appraisal enter a modification to roll into permanent financing. Your long-term rate lines up with market conditions at that modification, not a second purchase closing.

Conventional, FHA, USDA & VA

One-time close construction is available across these program types when you qualify. Each has its own rules for down payment, fees, and property eligibility, and I help you pick the right fit.

Investor Construction

Beyond owner-occupied agency and conventional builds, I also place investor-focused construction loans when the deal, builder, and exit strategy match what those lenders want.

Lender Shopping

Construction overlays vary wildly. I shop lenders so your builder, plans, and numbers land with an underwriter who actually funds projects like yours.

Typical Requirements

  • ✓ Builder: Licensed general contractor, insurance, and lender approval where required.
  • ✓ Plans & budget: Detailed construction contract, specs, and timeline for underwriting and appraisals.
  • ✓ Down payment / equity: Often higher than a standard purchase; varies by program and total project cost.
  • ✓ Reserves: Many lenders want extra liquidity beyond the down payment for overruns or delays.
  • ✓ Credit: Strong credit helps; minimums depend on the construction lender.

Who Is This For?

Construction financing is a fit when you are:

  • → Building a primary home on land you own or are buying
  • → Replacing an older home with new construction
  • → Working with a reputable builder and fixed plans
  • → Ready for draw schedules, inspections, and a longer timeline than a resale closing
  • → Investors pursuing new construction or build-to-rent with an investor construction program that matches the deal

Frequently Asked Questions

People often say "construction-to-permanent" for any loan that ends in a long-term mortgage after the build. A true one-time close means you complete your initial loan upfront, construction starts, and you draw funds as work is completed. When construction is done and the final appraisal is in, you enter a modification period to roll into permanent financing at current market rates. It is one upfront closing for the construction phase, not two separate purchase closings.
You close once up front, the build begins, and you typically pay interest on funds as they are drawn. After the home is finished and the final appraisal is completed, the loan is modified into permanent financing. That modification is when your long-term rate and payment are set based on market conditions at that time. I offer one-time close options across conventional, FHA, USDA, and VA programs, plus investor-focused construction loans when the deal fits.
Almost always yes. Lenders want a vetted general contractor, approved plans, specs, and a budget tied to draw schedules. Owner-builder programs exist in some cases but are harder to qualify for and not every lender offers them.
It varies by program and lender, but construction loans often require more skin in the game than a standard purchase, commonly in the 10-20% range for the total project cost. I will line up options based on your plans, builder, and timeline.

Planning a build?

Send your builder package and timeline. I will match you with construction lenders that fit your project.

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