Conventional One-Time Close construction loan

A conventional one-time close construction loan uses one closing for the construction financing and the permanent mortgage. You do not close once to build and again when the house is finished.

A private lender provides the money. This loan is not insured by the Federal Housing Administration, and it is not guaranteed by the Department of Veterans Affairs.

Who it is for

It is for someone building a home who wants conventional construction financing and the long-term mortgage handled in that single closing. With us, conventional loans go through automated underwriting, which looks at the whole credit picture. The lender still reviews credit, income, debts, the plans, the builder, and the lot. Approval is not guaranteed.

See also the FHA One-Time Close construction loan and the VA One-Time Close construction loan.

Steps

1. Talk with a loan officer about the lot, the plans, and the builder.
2. Apply, and share the plans for review.
3. Close once. That closing covers construction and the permanent mortgage.
4. The builder is paid in draws as completed work is inspected.
5. When the home is finished, the loan continues as the permanent mortgage.

1st Lending Solutions, Inc. DBA First Lending Solutions. NMLS #135932 (www.nmlsconsumeraccess.org). Licensed by the California Department of Real Estate (#01482431) and by the DFPI under the California Financing Law (No. 60DBO96452). Equal Housing Opportunity. This is not a commitment to lend. Approval is required.