Simplifying New Construction Financing with a One-Time Close Loan

mutuallendingsolut
Jun 6
2 min read

As demand in the housing market remains strong, new construction continues to gain momentum — especially as existing home inventory remains limited. For those looking to streamline the financing process on construction projects, a One-Time Close Construction Loan offers a faster, more efficient solution.

This type of financing combines the construction loan and permanent mortgage into a single transaction, reducing complexity and eliminating the need for multiple closings, re-qualifications, and interest rate uncertainty.

🏗️ What Is a One-Time Close Construction Loan?

A One-Time Close Construction Loan is designed to cover both the construction phase and the permanent financing under one approval, one interest rate, and one closing. The entire process is completed upfront — often in 20–30 days — allowing construction to begin quickly while long-term financing is already secured.

✅ Key Benefits

Single closing with one approval process
One interest rate (with an option to modify down if the market improves)
Faster closings — typically within 20–30 days
One down payment and one full credit review
Eliminates the need for a second closing or re-qualification after construction

🏠 Conventional Loan Options

Available in 15- and 30-year fixed terms, high-balance, and 7- or 10-year ARM options
Eligible for primary residences, second homes, and investment properties
Loan amounts up to conforming loan limits
700+ FICO, up to 95% LTV
DU eligible
11-month build period with 1-month modification period
Interest-only monthly payments during the build period

🎖 VA Loan Options

30-year fixed rate
Loans up to $4 million
Eligible for primary home purchases and cash-out refinances
580+ FICO, up to 100% LTV
DU eligible
11-month build period with 1-month modification period (build period is deducted from loan term)
No monthly payments required during the build period

🛠️ Why It Matters

Traditional construction loans often involve multiple steps, repeated approvals, and additional closings — all of which can slow down progress and increase costs. A One-Time Close Construction Loan streamlines the entire financing journey, reducing complexity and providing greater predictability.

By handling construction and permanent financing in one seamless process, this program supports a more efficient, timely, and reliable path to home completion.

Learn More

For more details about eligibility, program structure, or how this loan option supports residential construction, get in touch for further information.