You’ve sketched the floor plan, saved inspiration photos, and found the perfect piece of land. Now comes the big question: How do you finance a home that doesn’t exist yet?
Traditional construction financing may involve separate loans, two closings, changing rates, and additional costs—adding financial uncertainty to an already complex building project.
That’s where a One-Time Close Construction Loan comes in.
At Mortgage Center, our CU Exclusive One-Time Close Construction Loan simplifies the process by combining construction financing and your permanent mortgage into a single loan, with just one closing and one set of closing costs.
Let’s break down how it works and why more homebuyers are choosing this approach when building a custom home.
What Is a One-Time Close Construction Loan?
A One-Time Close Construction Loan combines two phases of financing into one loan:
- The construction phase, which funds the building of your home.
- The permanent mortgage phase, which begins once construction is complete.
Instead of securing a construction loan now and refinancing into a mortgage later, everything is established upfront.
That means:
✅ One loan application
✅ One closing
✅ One set of closing costs
✅ Interest rate established for the life of the loan
Simply put, it keeps your financing streamlined so you can focus on building.
Why Homebuyers Like the One-Time Close Approach
You Only Close Once
Traditional construction financing often requires borrowers to close on a construction loan and then close again on a permanent mortgage after the home is complete.
With a One-Time Close Construction Loan, there’s just one closing.
Fewer appointments. Less paperwork. Less stress.
Your Long-Term Financing Is Already in Place
Interest rates can change significantly during a 12-15 month construction timeline.
With Mortgage Center’s program, your mortgage financing is established at the beginning of the process, helping remove uncertainty while your home is being built.
You Can Focus on the Build
Building a home comes with enough decisions:
- Floor plans
- Finishes
- Builders
- Appliances
- Landscaping
The last thing you need is to worry about requalifying for a mortgage during construction.
By handling financing upfront, the process becomes much more predictable.
Who Is This Loan Designed For?
The program works well for members who want to:
- Build a primary residence
- Build a vacation or second home
- Purchase land and build
- Already own land and begin construction
- Pay off an existing land loan as part of the project
Whether you’re starting from scratch or already own the lot, there may be a path forward.
What Types of Homes Qualify?
Have a specific home style in mind? Our Loan Experts can help you understand whether your planned home meets program requirements
Not eligible:
- Manufactured homes
- Co-ops
- Leasehold properties
You Will Need a Qualified Builder
A successful construction project starts with choosing the right builder.
For this program, borrowers must work with a Qualified Builder.
Our team can walk you and your builder through the requirements before you move forward.
This requirement helps promote quality construction practices and project completion.
The National Association of Home Builders (NAHB) notes that builder experience and financial stability are important factors in keeping projects on schedule and managing costs effectively.
Available Loan Terms
Mortgage Center offers several fixed term loan options between 10 and 30 years and adjustable.
Adjustable-Rate Mortgages
- 5/1 ARM
- 7/1 ARM
Construction periods are typically 12 to 15 months, depending on the project and cost to build.
Financing options are available to fit different needs. Your Loan Expert can help you explore the options available for your project.
Loan Amounts and Eligibility
The One-Time Close Construction program offers flexibility for a wide range of projects.
Qualified jumbo borrowers may also be eligible, subject to underwriting requirements.
As with any mortgage, factors that are evaluated during underwriting include:
- Credit score
- Loan-to-value ratio (LTV)
- Property type
- Occupancy
- Income and assets
Why More Buyers Are Building Instead of Buying
Many buyers are finding that building can provide greater control over their home’s design, functionality, and energy efficiency.
According to the U.S. Census Bureau’s New Residential Construction data, newly built homes continue to represent a significant share of housing inventory in markets where existing home supply remains limited.
Building allows homeowners to create spaces that fit their lives today rather than settling for layouts designed decades ago.
Is a One-Time Close Construction Loan Right for You?
Building a home is a major investment. The financing shouldn’t make the process more complicated than it needs to be.
If you’re looking for:
- Simplicity
- Predictability
- One closing instead of two
- Financing designed specifically for construction projects
- Guidance from a team that understands the process
A One-Time Close Construction Loan may be the right fit.
At Mortgage Center, we believe construction financing should help move your project forward, not slow it down.
Ready to Start Building?
Whether you’re purchasing land, choosing a builder, or finalizing plans, our team can help you understand your options and navigate the construction financing process with confidence.
