Build your home with one loan and one closing

With a two-time close, you take out a short-term construction loan, then close again on a separate mortgage when the house is finished, paying two sets of closing costs and qualifying a second time. A one-time close combines both into one loan with one closing. That can reduce costs and the risk that a change in your finances affects the permanent loan.

Yes. Many lenders allow you to build on a lot you already own, and some let the equity in that lot count toward your down payment. If you are still buying the lot, the purchase can often be included in the same loan. Lenders review the lot's title, zoning and access to utilities, and requirements differ by program.

Yes, through lenders that offer FHA or VA one-time close construction programs. These follow the same basic rules as FHA and VA purchase loans, so the home must be your primary residence, and VA borrowers need a Certificate of Eligibility. Fewer lenders offer these versions and builder requirements can be stricter, so comparing lenders matters here.

Many lenders build a contingency reserve into the budget to absorb some cost overruns, and changes to the plans usually need lender approval. If construction runs past the lender's allowed period, an extension may be available, sometimes for a fee. Choosing an experienced builder with a realistic schedule helps. We review these terms with you before you close.