Loan ProgramsConstruction-to-Permanent Loans
Construction-to-Permanent Loans
One closing, one loan, from groundbreaking to move-in
Overview
How Construction-to-Permanent Works
A construction-to-permanent (also called "one-time close") loan funds your build in interest-only draws during construction, then automatically converts to a standard mortgage once the certificate of occupancy is issued — no second application, no second closing, and no risk of rate changes catching you between loans.
See My Loan Options
Key Benefits
Single closing covers both the construction and permanent phases
Interest-only payments during the build, based on funds drawn
Rate can be locked before construction begins on many programs
Automatic conversion to permanent financing at completion
Avoids a second round of underwriting, appraisal, and closing costs
Who This Is For
Borrowers who want cost and payment certainty going into a build
Anyone building a custom home, cabin, or barndominium from scratch
Buyers who'd rather not requalify for a second loan after construction
Construction-to-Permanent — Frequently Asked Questions
During the build phase you typically pay interest only on funds actually drawn — not the full loan amount — so payments start low and rise as draws are released. Once the loan converts to permanent financing, payments shift to standard principal-and-interest based on the final loan amount, rate, and term. A lending partner can model exact numbers against your rate and draw schedule.
Ready to see your financing options?
No obligation. No hard credit pull to get started. Answers in minutes.