Single Close Construction · Licensed in NJ · CT · FL · NMLS #1630225
Single Close Construction Loans — Land, Build, And Mortgage, One Closing
A single close construction loan finances the land, the build, and the permanent mortgage together. You sign once. The builder draws as the work is inspected, and the loan converts to your mortgage the day the certificate of occupancy is issued. No second closing, no second appraisal, and your permanent rate locked for the full build.
Last updated August 2026 · reviewed by a licensed mortgage broker
VA Single Close
VA Single Close
On Conventional
Conventional
Your Answer Right Here
Single Close Construction Loans, By Program
Building a house shouldn’t mean qualifying for a mortgage twice. That’s the whole idea behind a single close construction loan, and it’s why more of our buyers are asking about it than ever this year. Here’s the fast version of how our two programs compare, so you know where you likely land before reading another word.
| Program | Best For | Max Financing | Min. Credit Score |
|---|---|---|---|
| Conventional Single Close Construction | Buyers building a primary home, second home, or investment property | 95% primary · 90% second home · 85% investment purchase | 620 |
| VA Single Close Construction | Eligible veterans and active-duty borrowers building a primary residence | 100%, purchase or cash-out refinance | 580 |
Figures are illustrative as of July 2026, not a quote or commitment to lend. Your actual terms depend on credit, the builder, the property, and the specific lender’s guidelines. Call 888.958.5382 or apply online for your real numbers.
I’m Chris Luis, Broker/Owner of Mortgage-World.com (NMLS #1630225), and I’ve been placing loans since 2002. Construction files used to scare people off, mine included, because the old way meant closing on a construction loan, living through the build, then closing all over again on the permanent mortgage once the house was done. Rates could move against you in that gap. Fees got charged twice. A single close construction loan fixes that by locking your permanent financing terms up front, before the first shovel goes into the ground.
Why This Matters
One Closing vs. Two: Why It Matters When You’re Building
A two-close construction loan closes twice: once for the interim construction financing, and again for the permanent mortgage once the certificate of occupancy is in hand. Between those two closings, you’re exposed. Rates can climb. Your income or credit picture gets re-underwritten from scratch. You pay a second set of closing costs on a loan you already had. A single close construction loan collapses all of that into one closing, one set of documents, and one set of closing costs, with the permanent mortgage terms already locked in before construction starts.
How Conventional One-Time Close Financing Works
We offer this as a 15 or 30 year fixed rate, interest-only during the construction period, with a maximum construction period of 11 months. Your file needs to come back as an Approve/Eligible or Accept/Eligible finding through automated underwriting before we move forward. Financing goes up to 95% loan-to-value on a primary residence, 90% on a second home, and 85% on an investment purchase, though anything over 80% LTV will carry mortgage insurance. Your builder and the project itself both need to be approved before we can close, an escrow waiver is required for the construction period, and 5% of the total construction cost is held back in a contingency fund in case costs run over. Temporary rate buydowns and principal reductions aren’t permitted on this program, co-ops and attached condos aren’t eligible, and if you’re building in Texas, a 50(a)(6) transaction won’t qualify. The final draw to your builder is held until the certificate of occupancy, the final inspection, and the conversion to permanent financing are all complete.
How VA One-Time Close Financing Works
This is where veterans and active-duty borrowers get the biggest advantage of any construction program we offer: up to 100% financing, on both a purchase and a cash-out refinance, with no down payment required for an eligible borrower. It’s available as a 30 year fixed or a 30 year jumbo fixed, again interest-only through an 11-month maximum construction period, and it’s limited to a primary residence. Refinance transactions have to be submitted as a Cash-Out Type II. Minimum credit score is 580, base loan amounts can run as high as $4,000,000, and manufactured homes are only eligible on non-jumbo, one-unit properties. Married veterans can combine entitlement through split entitlement if that’s relevant to your file. The same construction-period rules apply here as on the conventional side: an escrow waiver during the build, a 5% contingency holdback, no temporary buydowns, no principal reductions, and the final draw held until every end-of-construction requirement, including the certificate of occupancy, is satisfied.
When a Two-Closing Structure Might Still Make Sense
Not every build fits a single close. If your construction timeline is genuinely going to run past 11 months, or you already have a specific interim lender lined up and just need permanent financing once the house is finished, a two-close structure can still be the right call. Part of what we do before quoting anything is figure out which structure actually fits your timeline and your builder, instead of forcing every file into the same box.
What You’ll Need
Eligibility and Requirements for Financing New Construction
What you’ll actually need to gather depends on the program, but here’s what each one generally asks for.
- Minimum credit score: 620
- Up to 95% LTV on a primary home, 90% on a second home, 85% on an investment purchase
- DU Approve/Eligible or LPA Accept/Eligible required
- Approved builder and approved project, 5% construction contingency held back
- Loan amount capped at the conforming loan limit for units and county
- Minimum credit score: 580
- Up to 100% financing, purchase or cash-out refinance
- Primary residence only, base loan amounts up to $4,000,000
- Approved builder and approved project required
- Manufactured homes eligible only on non-jumbo, one-unit properties
How To Get Started
Three Steps From Application to Groundbreaking
Do you own the lot already or need to buy it as part of the loan? Have you picked a builder? Rough plans and a rough budget are enough to start pointing you toward the right program.
Your builder needs to be approved along with the project itself, and your file has to run through automated underwriting before we lock your permanent rate for the full build.
Funds go out to your builder in draws as construction progresses. Once your certificate of occupancy and final inspection are in, your loan converts automatically into your permanent mortgage. No second closing.
Before you commit to a program, it’s worth checking a couple of independent sources. Fannie Mae’s Selling Guide on single-closing construction-to-permanent financing lays out how conventional construction-to-permanent loans are structured at the investor level. The VA’s home loans page covers the basics of VA-backed financing, including construction, and the VA’s own explainer on construction loans is a good plain-language read before you talk to us. And the CFPB’s Ask CFPB library is a solid, independent resource if you want a broader look at how construction and specialty mortgages differ from a standard purchase loan.
Tell us, and we will start you in the right program
Before You Start
What Happens After You Apply
- You send the application
A few minutes online. No documents at this stage.
- A licensed loan officer calls you
Someone on our team covering your state.
- We ask for documents and pull credit
Only once you have decided to move forward.
- You get an approval to shop with
Typically back within the hour.
What Clients Say
Real Reviews From Our Clients
Here’s what a few of our clients said about working with Mortgage-World.com.
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Common Questions Answered
Common Questions About Single Close Construction Loans
Related Resources
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- Licensed in
- NJ · CT · FL
- Broker license
- NMLS #1630225
- Florida license
- MLB 1987
- Family owned since
- 2017
- Office
- Ridgefield, NJ
Tell us about the build and we will point you at the right program
Whether you own the lot, whether you have a builder, and roughly what the finished house is worth. A licensed loan officer will tell you which of the two single close programs you fit and how the draw schedule would run against your build timeline.
Written and reviewed by Chris Luis, Broker/Owner of Mortgage-World.com, NMLS #1630225. About the author