One time close construction to permanent loans.

The old way to build was a two time close. You took out a short term construction loan with one lender, paid that closing, built the home, then went back to the market for a permanent mortgage, qualified again, paid another appraisal, and paid a second set of closing costs. If rates moved against you during the build, you were stuck with whatever the market gave you on closing day number two.

A one time close fixes all of that. One application. One underwrite. One appraisal that values the home as if it is already complete. One closing. Your permanent rate is set the day you sign, and the loan automatically rolls from the construction phase into the permanent mortgage when the certificate of occupancy comes through.

I place one time close construction loans through wholesale partners including United Wholesale Mortgage and Click n Close. Between the two, the full menu of construction to permanent options is covered.

• Conventional one time close. 5 percent down for primary residences. Loan amounts up to conforming and high balance limits. Single family, owner occupied, and second homes on select programs.
• FHA one time close. 3.5 percent down. Flexible credit. Great for first time builders and buyers who do not have a giant down payment.
• VA one time close. 0 percent down for eligible veterans and active duty service members. No PMI. The strongest construction program in the country if you have the entitlement.
• USDA one time close. 0 percent down in eligible rural areas, which includes a lot of inland Maine and large parts of rural Florida. Income limits apply.

Once we close, the lender holds the construction funds in escrow and disburses them to your builder in scheduled draws as work is completed. A third party inspector verifies each stage before money releases. You only pay interest on the funds that have actually been drawn, not the full loan amount, so your monthly construction payment starts small and grows as the home goes up.

Construction periods generally run 6 to 12 months. Extensions are available on most programs if the build runs long for reasons outside your control.

Your permanent rate is locked at closing for the full construction window. That protects you if rates climb while the home is being built. On select programs, a one time float down option is available if rates drop meaningfully before conversion, so you are not stuck above market on completion day. I will tell you up front which program offers a float down and what the trigger is.

• The lot, whether you already own it, are buying it at the same closing, or have it under contract
• A licensed, insured builder with a contract and a fixed price build budget
• Plans and specs from the builder
• Standard income, asset, and credit documentation for the loan type
• For VA, your Certificate of Eligibility. For USDA, the property in an eligible area and household income under the limit

In Maine, one time close is the cleanest way to build on family land, finish a lot you already own, or put up a new primary residence in a market where existing inventory is thin. USDA eligibility covers a meaningful slice of the state outside the Portland and Bangor cores.

In Florida, one time close is a fit for owner occupied new builds outside the big production builder zones, including custom homes on lots in coastal counties, the Panhandle, and inland Central Florida. Insurance and wind mitigation get underwritten as part of the deal, not as an afterthought.

If you are buying from a national production builder who has their own preferred lender financing, or doing a major renovation on an existing home rather than a ground up build, a different structure is usually better. Renovation loans, FHA 203k, and traditional purchase money with builder credits all have a place. I will tell you straight if a one time close is the wrong tool for your project.