The Benefits of One-Time Close New Construction Loans

Written by: Amanda Charalambous
  |  2 min read

Why settle for a pre-existing home when you can design and build a house that meets your exact needs? A one-time close new construction loan simplifies the process by combining construction and permanent financing into a single loan. This streamlined approach saves time, reduces costs, and eliminates the hassle of securing multiple loans.

What Is a One-Time Close New Construction Loan?

one-time close new construction loan (also called a single-close construction-to-permanent loan) combines financing for land purchase, home construction, and the final mortgage into one loan. Instead of taking out a separate construction loan and a traditional mortgage, this loan covers both, reducing paperwork and closing costs.

With this financing option, borrowers avoid the complexity of managing two loans and multiple approvals. It also provides a fixed interest rate from the start, offering stability during the home-building process. If you want full control over your home’s design, contractor selection, and construction timeline, a new construction loan is an ideal solution.

Benefits of a One-Time Close Construction Loan

Benefit How It Helps You
Lower Costs One closing means a single set of closing costs, saving time and money.
Custom Home Design Build the home you truly want without making compromises.
Low Down Payment Conventional loans require as little as 5% down, while VA loans offer 0% down.
Simplified Process A single approval covers both the construction and permanent mortgage.
Modify Down Option If interest rates drop after construction, you can secure a lower rate.
Flexible Build-Period Payments Conventional borrowers make interest-only payments, while VA borrowers pay nothing during construction.
Fewer Out-of-Pocket Expenses The mortgage covers the build, reducing upfront costs.

Get Started on Your New Home Today

At Loan Pronto, we make it easier to finance and build your dream home. Our one-time close new construction loan provides a seamless, cost-effective way to secure financing with one approval, one closing, and a low down payment.

Want to see how much you can afford? Get a free rate quote or apply online today to start your home-building journey. Use our mortgage and amortization calculators to estimate your monthly payment, including interest, taxes, and insurance.

Skip the hassle and take the first step toward your custom-built home today!

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