What Does a One-Time Close Construction Loan Cost?

A one-time close construction loan costs you one set of closing fees instead of two, because it wraps the build and the permanent mortgage into a single closing. Your real cost comes from that closing package, the interest paid during construction, and standard loan costs. You skip a second round of fees. What actually makes up the cost of a one-time close construction loan? The cost is three buckets, not one line item. Knowing them keeps surprises off your final statement. Closing costs. Title, appraisal, origination, and recording fees. You pay these once because there is one closing. Construction-period interest. While the home is being built, you pay interest on the money drawn so far, not the full loan. Standard permanent loan costs. Once the build is done, the loan converts to a regular mortgage with the usual escrows and insurance. The big savings sits in that first bucket. A two-loan setup makes you close twice and pay two sets of fees. This program does not. How does a one-time close save money versus two separate loans? It saves you a whole second closing. That is the core of the pitch. With a two-time close, you take a construction loan, then refinance into a permanent mortgage when the home is done. That second step means a second appraisal, second title work, and a second stack of fees. A one-time close locks it all in at the start. One appraisal, one title order, one closing table. For anyone building in Maine or Florida, that is real money left in your pocket. One-time close versus two-time close construction financing Cost factor One-time close Two-time close Number of closings One Two Sets of closing fees One Two Appraisals ordered One Two Re-qualify after build No Yes Do you pay interest during construction on a one-time close loan? Yes, but only on the money actually drawn. You do not pay interest on the full loan amount from day one. Construction funds release in stages called draws, tied to build progress. Interest builds only on what has been pulled so far, so early months cost less than later ones. Once the certificate of occupancy comes through, the loan converts to your permanent mortgage and the regular monthly payment begins. What do you need to qualify in Maine or Florida? You need a builder, a set of plans, and a lot, plus the usual credit and income review. The property has to be a real, appraisable project before funds release. A licensed builder and signed contract. The lender reviews the builder and the fixed-scope cost of the build. Plans and a lot. Whether you are building near Portland, ME or in Florida, the appraiser values the finished home from the plans. Credit and income that clear program guidelines. This works like any mortgage qualification. Florida buyers may also want to ask how items like flood-zone review and windstorm coverage could factor into insurance planning on the permanent side. Proof Construction is a real slice of the housing market, not a niche. According to the U.S. Census Bureau, privately-owned housing starts ran at a seasonally adjusted annual rate of 1.307 million units in December 2024, which shows how many buyers finance new builds every year rather than buying existing homes. Is a one-time close loan cheaper than a two-time close for a longer build? Usually yes, and the longer the build, the bigger the edge. A second closing does not get cheaper because your project took longer. With a two-time close, you also risk rate and qualifying changes between the two loans. A one-time close removes that re-qualify step entirely. For most Maine and Florida buyers building a primary home, one closing is the simpler and lower-fee path. Vision Mortgage is an Equal Housing Lender. NMLS #1649161.

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