Construction Loans
One-Time Close Construction Financing
Finance the land, the construction, and your permanent mortgage with one application, one approval, and one closing. Heather has guided borrowers and builders through this process for years.
How it works
One Loan From Groundbreaking to Move-In
A traditional construction project often requires two separate loans: a short-term construction loan, then a second mortgage application and closing when the build is finished. A One-Time Close (OTC) loan, also called a construction-to-permanent loan, combines both into a single transaction.
You qualify once and close once before construction begins. During the build, funds are paid out to your builder in scheduled draws as work is completed and inspected. When construction is finished, the loan becomes your permanent mortgage without a second closing.
Benefits
Why Borrowers Choose One-Time Close
One Closing
One application, one approval, and one set of closing costs instead of two.
Qualify Once
No need to requalify after construction, even if the build takes several months.
Land Included
Finance the purchase of land along with construction, or use land you already own as part of the transaction.
Managed Draws
Funds are released to your builder in stages as work is completed and inspected, which protects you and keeps the project on track.
The process
Step by Step
Every project is different, but most OTC loans follow the same general path. Heather will walk you through each step before it happens.
- Initial conversation. Talk with Heather about your plans, budget, timeline, and whether you already own land.
- Pre-qualification. Heather reviews your income, credit, and assets and helps you understand your budget.
- Builder and plans. Your builder provides plans, specifications, a construction contract, and a cost breakdown. The builder is reviewed as part of the approval.
- Appraisal. The property is appraised based on its expected value once construction is complete.
- Approval and one closing. Your loan is approved and closes once, before construction begins.
- Construction draws. As milestones are completed and inspected, funds are released to your builder.
- Completion. Once the home is finished and final inspection is complete, your loan continues as your permanent mortgage.
Program options
OTC Is Available Across Several Loan Types
Depending on your situation and eligibility, One-Time Close financing may be available through conventional, FHA, VA, and USDA programs. Each has different requirements for down payment, credit, property type, and builder approval. Heather will help you compare them side by side.
FAQs
Construction Loan Questions
What is a One-Time Close construction loan?
It is a single loan that covers construction and your permanent mortgage. You apply, qualify, and close once, before construction starts. When the build is complete, the loan continues as your long-term mortgage.
Can I include the cost of the land?
In many cases, yes. You can finance the land purchase together with construction, and if you already own the land, its value may be used toward the transaction. Heather will review the details of your situation.
Do I need to have a builder selected before I apply?
You can start the conversation any time, but your builder will need to be selected and reviewed before approval. Your builder provides plans, a contract, and a detailed cost breakdown.
What happens during construction?
Funds are paid out in draws as your builder completes work. Inspections confirm progress before each draw is released. Heather and her team help coordinate so the process stays on schedule.
What if construction costs change?
Budgets and change orders are a normal part of building. Planning for a contingency up front helps. Talk with Heather early about how changes are handled for your specific program.
How long does the construction period last?
It depends on the project and the program. Heather will explain the allowed construction timeline for your loan before you close.
All loans subject to credit approval, program eligibility, and builder approval. Programs, rates, and terms subject to change without notice. This is not a commitment to lend.
Planning a Build?
Talk with Heather before you finalize plans. The right financing structure up front makes the whole project smoother.