A one-time close construction loan — construction-to-permanent — funds your build and permanent mortgage in a single closing. One set of closing costs, one rate lock for both phases when the program allows, and automatic conversion when your Certificate of Occupancy is issued.
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.
The streamlined structure works well for many custom builds — but it is not the right fit for every borrower or market cycle.
Knowing the milestones helps you coordinate with your builder and set expectations for when full mortgage payments begin.
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Related guides to help you compare options and move toward pre-approval.
Separate construction and permanent closings — more flexibility to shop rates later.
Ground-up financing basics — draws, interest-only payments, and program overview.
Interest-only during the build vs full P&I after conversion or permanent closing.
Rate lock options for construction-to-permanent and two-time close files.
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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.