One-time close products often let you lock a rate — or a construction-plus-permanent structure — for a set period covering the build, with float-down options varying by lender. Two-time close files carry separate construction and permanent rates; you typically lock the permanent rate near the end of construction. Long builds may need extensions, and two-close borrowers face market risk if rates rise.
On a one-time close construction-to-permanent loan, many lenders let you lock the permanent rate at closing — or within a defined window — for a period long enough to cover the build. That protects you from rate increases during construction, though float-down provisions if rates drop vary.
Two-time close borrowers face a different picture. The construction loan has its own short-term rate — often adjustable or interest-only. The permanent mortgage rate is locked separately, usually when you apply for the take-out loan near completion. If rates rise during your build, your permanent payment could exceed original projections.
Long builds may outlast your lock period. Extensions are sometimes available for a fee. Ryan and Steve align your lock strategy with the builder timeline and compare one-time vs. two-time close options for your situation.
The product you choose determines when and how you lock.
Know when your rate is set and what happens if the build runs long.
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Compare close types, payment timing, and whether construction fits your goals.
Single closing from construction through permanent financing.
Separate construction and permanent closings explained.
Interest-only during build vs. full P&I after conversion.
Good-fit scenarios and program comparison.
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Ryan & Steve walk through one-time close vs. two-time close rate strategies — including lock periods, float-down options, and extension rules — so you know your payment before you break ground.