One-time close loan
Also called a single-close or construction-to-permanent loan. A loan structure that combines the construction financing and the permanent mortgage into a single closing — one application, one set of closing costs, and one approval before construction begins. When the home is complete, the loan converts automatically to the permanent mortgage with no second appraisal, no second underwriting review, and no second closing. The alternative is a two-close loan, which requires a separate refinance at completion. USDA construction loans are always single-close; conventional and FHA programs offer both structures depending on the lender. Construction loan overview →