One-Time Close Construction Loan
Military Members — your appraisal is on us!*
This Military Appreciation Month we’re celebrating Veterans and Active-Duty Service Members by offering a lender credit to cover the appraisal on all VA One-Time Close construction loans.
When building a new home, how do you fund its construction as well as the mortgage once you move in? A one-time close construction loan allows you to purchase land and build a new home, then converts to a traditional mortgage once construction is complete.
CrossCountry Mortgage can help you tap into a one-time construction loan to make your dream home a reality.
What is a one-time close construction loan?
A one-time close construction loan, or a single-close construction loan, provides financing for the construction of your house and becomes a permanent loan once the construction phase is complete. You can use single-close construction loans to purchase land and fund construction, and then simply convert the loan to a traditional mortgage once you’re ready to move in.
A one-time close construction loan can help you build a primary, secondary, or investment property, making it an ideal option for building a second home or rental property.
How do one-time close construction loans work?
One-time close construction loans fund your home construction and convert to traditional mortgages with a term of 15 or 30 years. A one-time close construction loan only involves one set of closing costs. You’ll also be able to draw funds during critical periods of the construction phase, up to a predetermined amount.
You’ll typically have up to a year to complete construction, though this can vary by the lender. At CrossCountry Mortgage, you’ll be able to make interest-only payments during the construction phase. Our team will also provide options to upgrade your loan to ensure that your project stays on track.
Types of one-time close construction loans
Single-closing loans come in several different types. Here are some of the most common one-time close construction loans.
Conventional one-time close
Conventional one-time close construction loans may have higher down payment requirements than other loan programs. However, many conventional programs offer lower interest rates, especially for borrowers who can meet the financial and credit score requirements.
You can also secure a conventional loan with as little as a 5% down payment.
VA one-time close
Qualified Veterans and Active Military Personnel might consider VA one-time close loans. These loans don’t require a down payment unless the base loan amount is over $1 million, and borrowers are not required to make any payments until they occupy the new home.
While the U.S. Department of Veterans Affairs oversees the financing phase, CrossCountry Mortgage will be your guide through the construction phase of your new home.
FHA one-time close
Backed by the Federal Housing Administration (FHA), FHA single-close construction loans provide an affordable solution for borrowers who can’t meet the stringent requirements of conventional loan programs. FHA loans allow you to purchase the land and home and fund construction costs with a down payment as low as 3.5%.
One-time close pros and cons
Is a single-close loan right for you? Here are the pros and cons of one-time close construction loan programs
Pros
A one-time close construction loan offers distinct advantages, such as:
- Funds the building and purchase of a house under a single home loan
- Reduces closing costs
- Locks in interest rates
- Eliminates the need for multiple loans and qualification process
Additionally, single-close loan options provide opportunities for less-qualified buyers, making it easier to fund the construction and purchase of your dream home, no matter your budget.
Cons
However, one-time construction loans can bring cons that include:
- Higher interest rates than other loan types
- Limited flexibility and ability to negotiate terms
- Limited choice of lenders
Still, many borrowers still enjoy the simplicity of a single-close loan to complete both the construction and purchase of their home.
One-time close construction loan requirements
Loan requirements vary by the loan program to which you apply. FHA and VA loans, for example, only require a credit score of 620 or above, though with a score below 580, you may have to make a higher down payment. Conventional loans have the highest credit score – 700 and above – and financial requirements, but buyers with strong credit will be able to secure a loan with as little as a 5% down payment.
If you’re not sure which program is right for you, contact CrossCountry Mortgage to explore your options.
How to get a one-time close construction loan
To get a one-time close construction loan, you’ll go through a multi-step process to ensure all the pieces are in place. Securing a single-close construction loan will require you to:
- Choose a builder who meets the eligibility requirements for financing
- Prepare a contract for the completion of the home construction
- Have the loan reviewed by the underwriting team
- Underwrite and approve the loan
- Close the loan
- Begin construction
At CrossCountry Mortgage, our team can guide you through this process, making it simpler to obtain the funding you need to secure a one-time close construction loan. With our team on your side, you’ll be one step closer to building your dream home without the complications of multiple loan options.
One-time close construction loan FAQs
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If you’re building a home, a one-time close construction loan can streamline the process. You can use this lending option to fund the entire process of building and owning the home, and you may even tap into FHA or VA loan programs that offer financial assistance to qualified borrowers.
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A one-time loan is a single home loan that lets borrowers fund the purchase of land construction of a home, and then convert the loan to a traditional mortgage. This saves borrowers from dealing with the complex process of multiple loans, and it only requires a single set of closing costs.
*TERMS & CONDITIONS: Available for new VA one-time close construction loans only. Offer can only be redeemed by closing a loan with the CCM Construction Team at CrossCountry Mortgage, LLC. Offer to cover the cost of the veteran’s appraisal will be redeemed at closing in the form of a lender credit (must be applied before any seller paid credits). Borrower cannot receive cash at closing. Approval subject to CrossCountry Mortgage, LLC, mortgage insurance, and loan purchase underwriting guidelines and property approval for loan. Available only on loans originated through completed residential mortgage loan applications received directly by CrossCountry Mortgage, LLC before 11:59 p.m. on May 31, 2025. Loan program terms and conditions are subject to change without notice. Offer must be presented with an application for a residential mortgage loan. Only one offer per loan transaction will be accepted. No cash value. Offer will be rescinded if the borrower elects to cancel the loan transaction or the conditions for sale of the loan change. CrossCountry Mortgage, LLC has the right to accept, decline, or limit the use of any discount or offer. Equal Housing Opportunity. All loans subject to underwriting approval. Certain restrictions apply. Call for details. See our state disclosures for full list of state licensures. CrossCountry Mortgage, LLC. NMLS3029 (www.nmlsconsumeraccess.org).