A two-time close construction loan funds your build with a short-term construction loan first, then a separate permanent mortgage after the home is finished. Two closings and two fee sets — but you can shop permanent rates and products when the house is complete and appraised.
With a two-time close, your first closing establishes a construction loan — a shorter-term, often interest-only facility that disburses funds in draws as the builder completes milestones. This loan is designed to be paid off when construction ends, not held for 30 years.
When the home is finished, a Certificate of Occupancy is issued, and a final appraisal confirms the completed value, you close a brand-new permanent mortgage. Proceeds from that loan pay off the construction balance, and you begin standard principal-and-interest payments on the long-term note.
Ryan and Steve help you decide whether the flexibility to shop permanent rates at the end of the build is worth the extra closing costs and coordination — especially when construction timelines stretch across changing rate environments.
The dual-loan structure trades convenience for flexibility — here is what drives the decision for many custom home buyers.
Each phase has its own milestones, inspections, and payment structure.
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Related guides to help you compare options and move toward pre-approval.
Single closing for construction and permanent financing — streamlined fees and rate lock.
Ground-up financing basics — draws, interest-only payments, and program overview.
Rate lock strategies for construction and permanent phases.
Compare one-time vs two-time close and see which path fits your goals.
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Compare the total cost of two closings against the flexibility of shopping permanent rates when your home is done. Ryan & Steve model both paths for your builder timeline — not a commitment to lend; subject to credit and property approval.