One-Time Close construction & renovation
Build or renovate with one loan, one closing.
Finance the lot or purchase, the construction, and your permanent mortgage together — a single closing with your rate locked up front. Pay interest only while it’s being built, then it converts to a long-term loan you keep.
Why One-Time Close
One loan from ground-break to move-in
A One-Time Close construction-to-permanent loan rolls three things into a single loan and a single closing: the lot or purchase, the construction draws, and the permanent mortgage that pays it off. Most construction financing closes twice — once for the build, then again to refinance into a mortgage. This closes once.
- One closing, one set of costs. No second closing or second appraisal to convert.
- Your rate is locked before you break ground, with a one-time float-down available at conversion.
- Interest-only during construction, charged on the funds actually drawn — not the whole loan.
- Converts automatically to a 15, 20, or 30-year fixed mortgage when the home is finished.
- No re-qualifying to convert, as long as the build finishes on schedule.
- Draw inspections protect you — funds release only as work is completed and verified.
Three ways to use it
Whether it’s your home or an investment
Your primary home
Conventional OTC
Build the home you’ll live in and convert to a 30-year fixed. As little as 10% down, from a 700 credit score, up to conforming and high-balance limits.
- Primary residence · single-family or PUD
- Interest-only during the build
- Gift funds allowed toward your down payment
An investment property
DSCR OTC · qualifies on the property
Build new or take on a major renovation and qualify on the property’s rental income, not your tax returns. Up to $3M, from a 680 score, and you can close in an LLC.
- New construction or major rehab (gut rehab, extensive repairs)
- Up to 4 units · PUD or modular
- 30-year fixed or ARM options
Self-employed or larger loans
Non-QM Full / Alt-Doc OTC
Qualify with bank statements, a CPA-prepared P&L, or your assets instead of tax returns — on a primary or second home, up to $5M.
- Bank statement, P&L, or asset-utilization income
- Primary and second homes
- Loan amounts to $5,000,000
Programs, limits and eligibility vary by property, location and borrower profile. Your loan officer confirms the path that fits before you apply. This is a construction-to-permanent loan you keep — not a short-term fix-and-flip loan.
What to expect
From plans to keys
- 1Get pre-qualified & line up your builder. We confirm your numbers and the right program, and your licensed general contractor is vetted and works from a fixed-price contract.
- 2One closing. Construction and permanent financing close together, with your rate locked for the build.
- 3Draw as it’s built. Funds release in draws as work is completed and inspected — you pay interest only on what has been drawn.
- 4Convert to your mortgage. At completion the loan converts to your fixed permanent mortgage — no second closing, and no re-qualifying when it’s on time.
Common questions
Build & renovation FAQ
What is a One-Time Close construction loan?
One loan and one closing that cover the lot or purchase, the construction, and the permanent mortgage. Instead of financing the build and then refinancing into a mortgage, it converts automatically when the home is finished.
How much do I need to put down?
As little as 10% on a primary residence. Investment and larger non-QM loans vary by program and loan size. Gift funds are allowed toward the down payment on primary homes.
How do payments work during construction?
Interest-only, charged on the funds that have actually been drawn — not the full loan amount — so the payment steps up as the build progresses, then becomes a normal amortizing mortgage at conversion.
Can I build an investment property?
Yes. The DSCR option qualifies on the property’s projected rental income rather than your tax returns, allows new construction or major rehab, and can close in an LLC.
Can I do a major renovation, not just new construction?
Yes — major rehab such as a gut renovation, extensive repairs, or replacing major components is eligible on investment properties. Note this is a construction-to-permanent loan you keep, not a short-term fix-and-flip loan.
I’m self-employed — can I qualify?
Yes. The non-QM option lets you qualify with bank statements, a CPA-prepared P&L, or your assets instead of tax returns, on loans up to $5M.
What credit score do I need?
Roughly from 680 on investment-property loans and 700 on primary-home conventional loans. Higher scores open higher loan amounts and lower down payments.
Do I have to re-qualify to get my permanent loan?
No, as long as the home is completed and the loan converts on schedule. If the build runs long or changes materially, a re-qualification may be required.
How long can construction take?
Construction terms typically run 12 to 18 months before converting to the permanent mortgage, with extensions by exception.
Does my builder need to be approved?
Yes. Your general contractor is vetted and works from a fixed-price contract, and draws release against completed, inspected work — which protects both you and the lender.
Start your build or renovation
Let’s map out your project
Tell Justin about the home or the property and your plans, and you’ll get the right program, the numbers, and the documents to line up next. Usually the same day, with no credit pull to start.
I help clients finance new construction and major renovations with one closing — on their own home, a second home, or an investment property — and settle on the right documentation path before you apply.
Three ways to start
Apply now, or email or text Justin directly — usually answered the same day.
No credit pull to start — reach out and we’ll map the program to your project.