One-Time Close Construction Loans
Build your dream home and skip the stress of multiple closings. Our one-time close construction loan covers construction and permanent financing—saving time, money, and hassle from start to finish.
How Do One-Time Close Construction Loans Work?
A one-time close construction loan—also known as a construction-to-permanent loan—lets you finance your lot, build, and long-term mortgage in one simple process. Instead of juggling separate loans and duplicate closings, you get one approval, one closing, and one interest rate.
For buyers planning to build a house, this type of construction mortgage loan is the easiest and most cost-effective way to fund the project. Traditional two-time close construction loans require a separate closing for the build and another for the permanent loan, which means higher costs and more paperwork. A single-close loan eliminates that hassle.
With a one-time close construction loan, you’ll benefit from:
-
A low locked-in construction loan rates during the build—with the option to lower your rate once the home is complete.
-
Streamlined construction loan requirements with one set of documents and underwriting.
-
Lower costs by avoiding duplicate fees and second closings.
-
Flexible use—buy land, build a primary home, vacation property, or investment property.
-
Zero Down Payment – Veterans can use their VA entitlement with a one-time close construction loan, allowing them to build a new home with no money down.
If you’re comparing the best construction loan lenders, one-time close financing is worth exploring. It’s the most efficient way to take your project from blueprint to move-in.
Why Homebuilders Choose LendFriend
LendFriend Mortgage works with the best construction loan lenders across Virginia, North Carolina, Texas, California, and nationwide. Our process is fast and seamless. With LendFriend, you’ll avoid duplicate fees and second approvals—saving both time and money while locking in your construction loan rate from the start.
We know how frustrating it is when traditional lenders overcomplicate construction financing. That’s why we built a better way. Our one-time close construction loan programs—including Conventional, FHA, and VA options—are designed to streamline requirements, reduce stress, and even allow you to lower your rate once construction is complete.
Whether you’re buying land, building your primary residence, or financing a vacation or investment property, LendFriend gives you expert guidance every step of the way. From construction loan calculators to hands-on support from experienced loan advisors, we’re committed to making construction lending straightforward and stress-free.
Ready to find out if a one-time close construction loan is right for you?
5-Star Google Reviews From Happy Clients
-
LendFriend is the only place to go for mortgage brokerage services. Their unparalleled technical knowledge, relationships with a wide array of lenders, and outstanding service make them the absolute best place to secure your next mortgage.
Robert Daake
Closed March 2025 -
I am so grateful for Micheal and his team. As a first time homebuyer with multiple businesses, I was very nervous about the loan process. Anyone who’s self employed knows loan processes for us are more extensive but LendFriend made it an ease. From getting a great rate to closing, they made clear communication and were extremely helpful .... They are truly amazing people to have on your team. Thank you Micheal, Morgan and Crystal.
Annie Momin
Closed September 2024 -
LendFriend has been an outstanding lending partner, reliable, transparent, and incredibly easy to work with. Their team made the entire process smooth from start to finish, always available to answer questions and guide us through each step. I highly recommend LendFriend to anyone looking for a trustworthy and efficient lender.
Trung Nguyen
Closed June 2025 -
I had a great experience working with Eric and his team @ LendFriend. As a CEO/business owner my personal finances can be complex. Eric was able to bring me a tailored solution that met my needs without making the process unnecessarily clunky or painful. I highly recommend Eric and his team if you’re looking for alternative solutions with great rates.
Andrew Didier
Closed August 2024 -
Eric and his team are great! They helped me get the best rate and were incredibly proactive on getting me the best deal as the market was changing. I will definitely work with him again and highly recommend anyone else that has questions about real estate to give him a call and he will do his best to understand and provide you the best outcome
Blake
Closed May 2024
5/5 Star Reviews on Google, Zillow, and Experience.
Build Your Dream Home in 3 Simple Steps
With our trusted network of lenders, LendFriend Mortgage helps homebuyers streamline construction-to-permanent financing. A one-time close construction loan lets you buy land, fund the build, and roll into a permanent mortgage with just one approval and one closing.
Whether you already own your lot or are purchasing land to build, we make it simple to get preapproved with confidence and lock in your construction loan rate upfront.
Step 1: Finalize Plans and Close on Your Loan
Have your land and home plans ready before applying. We’ll help you close on a one-time construction-to-permanent loan that covers both the build and long-term mortgage in one step.
Step 2: Build Your Dream Home
Draw funds as construction progresses. During the build phase, you’ll typically make interest-only payments—keeping costs predictable until your home is complete.
Step 3: Convert to Permanent Financing
Once construction wraps up, your loan automatically converts to a traditional mortgage with no second approval or closing. You move in knowing your rate and terms are already secured.
Want to learn more about One-Time Close Construction Loans?
Talk to Eric today!
FAQs: How One-Time Close Construction Loans Work
How do one-time close construction loans work?
A one-time close construction loan, also known as a construction-to-permanent loan, combines three stages of financing into one: the lot purchase, the construction loan, and the long-term mortgage. Instead of applying for two separate loans and paying closing costs twice, you secure one approval and one closing upfront. During construction, funds are drawn in stages to pay the builder. Once the home is complete, the loan automatically converts to a traditional mortgage—often a 30-year fixed loan (or alternative option)—without the need for a second closing or requalification. This saves borrowers time, stress, and thousands in duplicate fees.
Do I need finalized plans before applying?
Yes. A construction-to-permanent loan requires that you already own or are purchasing a lot and have finalized plans with a licensed builder. Lenders need a signed contract, detailed construction budget, and specifications for the project before they can underwrite the loan. These documents are part of the construction loan requirements that help ensure the project is feasible and meets lender guidelines. Having your plans finalized also allows the appraiser to assign a completed value to your new home, which determines how much you can borrow.
Can I lower my rate after the construction phase?
Yes. With a one-time close construction loan, your interest rate is locked during the construction period, which protects you from rate increases. But many lenders, including the best construction loan lenders we work with, allow a rate modification once the home is complete. This means if construction loan rates or long-term mortgage rates drop before you move in, you may be eligible to lower your rate without going through a full refinance. It’s a unique advantage of one-time close financing—stability during the build with flexibility at the end.
How much money does a one-time close loan save compared to a two-time close?
Borrowers typically save 2–5% in closing costs by choosing a one-time close construction loan over a traditional two-time close. On a $700,000 loan that's upwards of $35,000!
That’s because you only pay for one appraisal, one set of title fees, one underwriting process, and one set of closing costs.
With a two-time close, you pay all of these costs twice: once for the construction loan and again for the permanent mortgage. For many buyers, this can amount to tens of thousands of dollars in savings—making the one-time close loan the most cost-effective way to finance new construction.
What loan types are eligible for a one-time close construction loan?
At LendFriend, we offer Conventional one-time close construction loans and VA one-time close construction loans. Conventional loans are available on 15-year and 30-year fixed terms, high-balance mortgages, and adjustable-rate options like 7/1 and 10/1 ARMs. VA one-time close loans are available exclusively on 30-year fixed terms for eligible veterans and service members. Both programs allow you to finance the land, construction, and permanent mortgage with a single closing.
What is the maximum and minimum loan amount available?
Our one-time close construction loans start at a minimum of $750,000 and go up to a maximum of $5 million, depending on the program. This wide range makes it possible to finance everything from a custom primary residence to larger luxury or multi-million-dollar builds.
What credit score and LTV are required?
For Conventional one-time close loans, you’ll generally need a 700+ FICO score with financing available up to 95% loan-to-value (LTV). For VA one-time close construction loans, eligible borrowers can qualify with a 580+ FICO score and up to 100% LTV. This flexibility allows qualified veterans to build with zero down payment and no monthly payments during the build period.
Confidence comes with learning...
And our Learning Center gives you access to everything you need to know about buying a home and helps you understand the ins and outs of self-employed mortgages and bank statement loans. Read some of our favorite articles below.
