What Is a One-Time Close Construction Loan? | 2MG

Find out whether construction-to-permanent fits your builder timeline and rate goals. Ryan & Steve walk you through one closing, one rate lock, and what happens at conversion — not a commitment to lend; subject to credit and property approval.

• window.open('https: Construction Overview Single Closing for Build and Permanent Financing With a one-time close loan, you close once before construction begins. That single closing establishes both the short-term construction phase and the long-term permanent mortgage. You do not return to the closing table when the house is finished — the loan converts in place. During construction you make interest-only payments on drawn funds. When the builder completes the home and a Certificate of Occupancy is issued, the loan automatically rolls into a standard amortizing mortgage. Your payment structure changes from interest-only to principal and interest without a second round of closing costs. Ryan and Steve help you weigh whether the convenience of one closing and a single rate lock outweighs the trade-off of less flexibility to shop permanent rates mid-build — because every builder timeline and market condition is different. At a Glance Pros and Cons of One-Time Close The streamlined structure works well for many custom builds — but it is not the right fit for every borrower or market cycle. How One-Time Close Moves From Start to Conversion Knowing the milestones helps you coordinate with your builder and set expectations for when full mortgage payments begin. Keep Exploring Related guides to help you compare options and move toward pre-approval. 2MG Daily Related Blog Posts Recent articles on construction-to-permanent loans, custom builds, and new home financing. {blogLoading ? ( ) : blogError ? ( Try Again
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