One-Time Close New Construction LoansBuild Your Dream Home the Simple Way: One‑Time Close New Construction LoansOne-Time Close New Construction Loans

By vmalendingcomIn Construction, ConventionalPosted

One closing. One rate. One down payment. One approval.
If you’re planning a custom build, our One‑Time Close New Construction loan wraps your construction and permanent mortgage into a single closing—saving time, money, and stress. It’s available for conventional loans (including ARMs and high‑balance) and VA loans.

Why Borrowers Love It

  • One closing = one set of costs. You pay closing costs once—not twice.

  • Low down payment. As little as 5% down on conventional and 0% down on VA, making new construction accessible to more buyers.

  • Rate protection with flexibility. Lock your rate at closing—and if the market improves, use the modify‑down option to lower it.

  • One approval and one full credit report. Skip the second round of underwriting.

  • Build‑period payments that fit the budget. Conventional borrowers make interest‑only payments during construction; VA borrowers make no monthly payments during the build period.

  • Less out‑of‑pocket. Your mortgage funds the build through controlled draws—you don’t have to pay for construction first and refinance later.

  • Truly custom. New construction means no “making do”—design the features you want from day one.

Call us at 786‑622‑2248 or start your application to explore your options.

How the One‑Time Close Works (Step‑by‑Step)

  1. Pre‑approval & budget. We review income, assets, and credit to set a comfortable budget. Start here: Get Pre‑Approved.

  2. Choose your builder. We help verify licensing, insurance, and experience. See our Builder Resources.

  3. Appraisal on plans & specs. An appraiser values the future home (“as‑completed”) using your plans and materials list.

  4. One closing. You sign once. Your down payment and closing costs are collected at this time. Learn more about closing costs.

  5. Construction phase. Funds are released in draws as work is completed and inspected. Here’s how a draw schedule works.

  6. Build‑period payments.

    • Conventional: interest‑only on what’s been drawn. Use our payment calculator to estimate.

    • VA: no monthly payments during construction.

  7. Modify‑down (optional). If rates drop before your home is finished, request a rate reduction under program guidelines.

  8. Automatic conversion. After the final inspection, the loan converts to your permanent mortgage—no second closing, no new approval.

What You Can Use It For

  • Custom homes on your lot

  • Tear‑down and rebuilds

  • Modern additions with full reconstruction

  • High‑balance loan amounts (where available)

Occupancy and property type rules apply by program. Ask us about eligibility for your specific project: Check Eligibility.

One‑Time Close vs. Two‑Close (Traditional) Construction Loans

One‑Time Close (You):

  • Single closing and one set of costs

  • One qualification and one credit pull

  • Rate locked up front with a potential modify‑down

  • Interest‑only (Conventional) or no payments (VA) during build

  • Mortgage funds construction via draws

Two‑Close (Old Way):

  • Two separate closings (construction loan, then refinance)

  • Two sets of costs and two approvals

  • Second appraisal and re‑qualification risk

  • Rate exposure until you refinance

  • You might carry construction financing before getting a long‑term loan

Costs & Cash Flow—What to Expect

  • Down payment: As low as 5% (Conventional) and 0% (VA).

  • Closing costs (once): Standard lender fees, title, recording, and prepaids—see our guide to closing costs.

  • Build‑period payments:

    • Conventional: interest‑only on funds disbursed.

    • VA: no monthly payments during the build.

  • Reserves & contingencies: Many projects include a contingency reserve for the unexpected.

  • Inspections & draws: Each draw typically requires an inspection before funds are released.

Builder & Contractor Advantages

  • Faster payments. Once you close, funds are ready for materials and labor through a clear draw schedule.

  • More creativity, less cookie‑cutter. Financing supports custom designs, not just tract builds.

  • Simplified buyer experience. Fewer moving parts for your client = smoother projects.

Share this page with your GC: Builder Resources.

Quick FAQs

Do I need perfect credit?
No. Strong, documented income and responsible credit help, but “perfect” isn’t required. Learn about credit basics.

Can I use my lot as part of the down payment?
Often yes—existing lot equity may count toward your required down payment. We’ll confirm with your appraisal.

What if prices change during the build?
A contingency reserve can help manage overruns. We’ll walk you through options before closing.

Is the modify‑down guaranteed?
It’s optional and subject to program rules and eligibility (and may involve a fee). Read about it here: Modify‑Down Option.

Are ARMs available?
Yes. We offer ARM options as well as fixed‑rate choices.

Can I go high‑balance?
Where eligible, yes. See High‑Balance Loans.

What documents will you need?
Start with ID, income/asset docs, plans & specs, and builder credentials. Use our Documents Checklist.

Get Started

Helpful Internal Links

One‑Time Close Overview • Apply Now • Rates • Closing Costs • Modify‑Down Option • ARM Options • VA Loans • Conventional Loans • High‑Balance Loans • Builder Resources • Draw Schedule • Documents Checklist • Payment Calculator • Eligibility • FAQ • Contact Us • Disclosures • Privacy