In short
A one-time close construction loan finances your build and your permanent mortgage together, with one application, one approval and one closing before construction starts. The builder is paid in inspected draws, and the loan converts when the home is done. Minimum credit is 580 VA and 620 FHA and conventional.
Reviewed by Scottie Campbell, NMLS #1610726 · Last updated October 18, 2026
What is a one-time close construction loan?
A one-time close construction loan, also called construction-to-permanent, combines your construction financing and your long-term mortgage into a single loan with one application, one approval and one closing before the build starts. During construction, your builder is paid in inspected draws. When the home is finished, the loan converts to its permanent phase without requalifying. Minimum credit scores are 580 for VA and 620 for FHA and conventional.
Key takeaways
The hardest part of building a home shouldn't be the financing. A one-time close construction loan lets you qualify once, close once and then focus on the fun part: watching your house go up. I'm Scottie Campbell with Waymaker Mortgage Company. I'll walk you through how the single closing works, what gets set up front and how to keep your build on track from the first draw to move-in day.
One Loan From Dirt to Move-In
A one-time close construction loan (you'll also hear "construction-to-permanent" or "single-close") wraps two loans into one. The money that pays your builder during construction and the long-term mortgage you'll live with afterward are approved together and closed together, before anyone breaks ground.
What that means for you is one application, one underwriting decision, one appraisal based on your plans and one set of closing costs. When the house is finished, the loan moves into its permanent phase without a second closing.
Who Qualifies
| Loan type | Minimum credit score | Down payment |
|---|---|---|
| VA one-time close | 580 | 0% for eligible veterans |
| FHA one-time close | 620 | 3.5% |
| Conventional one-time close | 620 | Depends on your scenario |
Beyond credit, you're qualified much like any other mortgage: income, debts, assets and the appraised value of the finished home. The difference is that you're qualified once, up front, instead of again at the finish line.
What Gets Set at Closing
At a single closing you sign the documents for the whole life of the loan. Depending on the program, that typically sets:
- The total loan amount covering the build (and, in many cases, the land purchase or payoff)
- The loan program and term for the permanent mortgage
- The rate structure for the permanent phase, such as fixed-rate or adjustable-rate
- The construction budget, the draw schedule and any contingency reserve
On pricing: Your rate depends on your scenario and the day's market. Reach out and I'll price it for real.
During Construction: Draws, Inspections and Payments
Your builder doesn't get a lump sum. The budget is broken into stages, like foundation, framing, dry-in, mechanicals and finishes. When a stage is complete, the builder requests a draw, an inspector verifies the work and the funds are released.
What you pay during the build depends on the program. Some programs have you make payments based only on the funds drawn so far. Others, like the USDA single-close program, can escrow construction-period payments from the loan itself. Before you sign anything, I'll show you what your monthly obligation looks like during the build so you can plan around your rent or current house payment.
Conversion: Moving Into the Permanent Loan
When the builder finishes and the home passes its final inspection, the loan rolls into its permanent phase. Depending on the program there may be a short modification document to sign, but there's no new application and no requalifying. That's the whole point of doing it this way.
One-Time vs. Two-Time Close
| One-time close | Two-time close | |
|---|---|---|
| Applications | One | Two |
| Closings and closing costs | One set | Two sets |
| Requalify after the build | No | Yes |
| When permanent terms are set | At the single closing | At the second closing |
| Room to restructure the permanent loan | Less | More |
A two-time close still makes sense for some people, for example if you plan to sell another home mid-build and want to put that money toward the permanent loan. For most families building a primary home, though, I kinda like the one-time close for you because the biggest risk in a two-time close is that something changes between closings: a job change, a new car loan, a medical bill that hits your credit. With one closing, you've already crossed that bridge.
Where Single-Close Files Get Stuck
I've been doing this since 2003, and these are the snags I help people steer around:
- Change orders. Upgrading cabinets mid-build adds cost that wasn't in the approved budget. Bigger changes may need lender sign-off and cash from you.
- Builder approval. Your builder is reviewed too: license, insurance, experience and references. Start this early so it doesn't hold up your closing.
- Vague contracts. A detailed, fixed-price contract with full specifications makes the appraisal and the draw schedule far easier.
- New debt during the build. Even after closing, hold off on financing furniture or a truck until you've moved in.
Why Work With Me on a One-Time Close
You're talking to the owner of this company. Waymaker Mortgage Company works with multiple investor partners, and one-time close guidelines differ from one investor to the next: builder requirements, how land is handled, contingency rules and more. If one investor's guidelines don't fit your build, I take your file to one that does.
With a Total Cost Analysis, we look at the whole picture: the lot, construction-period costs, closing costs and the permanent mortgage over the time you'll actually own the home. If you're planning to build near Georgetown, TX, feel free to text me before you sign with a builder. It's a lot easier to set things up right than to fix them mid-build.
Information on this page is general and educational. It is not a commitment to lend or an offer of credit. Programs, guidelines and eligibility change and depend on your full scenario. Waymaker Mortgage Company, NMLS 2440476. Equal Housing Lender.
Quick facts
- Also called
- Construction-to-permanent or single-close
- Minimum credit score
- 580 VA; 620 FHA and conventional
- Down payment
- 0% VA (eligible veterans); 3.5% FHA; conventional varies
- Number of closings
- One, before construction begins
- How the builder is paid
- Inspected draws as each stage is completed
Is this loan right for you?
Who it's for
- Families building a primary residence who want to qualify only once
- Buyers who want one set of closing costs instead of two
- Veterans with credit from 580 who want to build with VA financing
- People with a chosen builder, a lot and a detailed set of plans
Who it may not fit
- Borrowers who expect a large cash infusion mid-build and want to restructure the loan at the end
- Anyone who wants to act as their own builder
Pros and cons
Pros
- One application, one approval and one closing
- No requalifying when construction is finished
- Permanent loan terms are set before the build starts
- One set of closing costs instead of two
- VA option available from 580 credit
Trade-offs to weigh
- Less room to restructure the permanent loan after the build
- Builder, plans and budget must all be approved before closing
- Change orders after closing can require lender approval and extra cash
Frequently asked questions
What credit score do I need for a one-time close construction loan?
The minimum is 580 for VA one-time close and 620 for FHA and conventional one-time close. Credit is only one piece; income, debts, assets and the finished home's appraised value all matter too. If you're a little short, I'll put together a Mortgage Action Plan to get you there.
Do I have to qualify again when the house is finished?
No. That's the main advantage. You're qualified once before construction begins. When the home passes final inspection, the loan moves into its permanent phase. Some programs have a short modification document to sign, but there's no new application.
Do I make payments while the house is being built?
It depends on the program. Some have you make payments based only on the funds drawn so far, and others, like the USDA single-close program, can escrow construction-period payments from the loan. I'll lay out your expected payments during the build before you commit.
Can the land be included in a one-time close?
In many cases, yes. The loan can often cover buying the lot or paying off an existing land loan, and equity in land you already own can frequently count toward the project. The rules vary by program and investor, so send me the details early.
When is a two-time close a better choice?
A two-time close can make sense if you expect a large sum during the build, like proceeds from selling another home, and want to restructure the permanent loan at the end. It means two applications and two sets of closing costs, so we'd compare both side by side.
What rate will I get on a one-time close?
Your rate depends on your scenario and the day's market. Reach out and I'll price it for real.
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Last updated October 18, 2026 · Reviewed by Scottie Campbell, NMLS #1610726. This page is educational and not a commitment to lend; program details change — ask for current figures.