Why we love single close C/P loans
They take the stress out of building a home. With one application, one approval, and one closing, you skip the uncertainty of two loans and lock in your mortgage from the very start. It’s smoother, smarter, and built to support your dream home journey.
Single Close Construction-to-Permanent Loans At A Glance
Building a new home? A Single Close Construction-to-Permanent (C/P) loan lets you finance your build and long-term mortgage with just one loan and one closing. That means fewer steps, more convenience, and peace of mind knowing your permanent financing is already in place before construction even begins.
Highlights
- One Loan, One Closing: Simplifies the process by combining construction and permanent financing.
- Fixed-Rate Stability: Lock in your long-term interest rate before construction starts.
- Interest-Only During Construction: Keep payments manageable while the home is being built.
- Streamlined Underwriting: No need to requalify once construction is complete.
- Roll Closing Costs Into the Loan: You can often finance upfront costs.
Single Close C/P Loan Guidelines
- Down Payment: Often 10%–20%, varies by loan type and builder.
- Loan Type: Conventional, FHA, VA, or USDA versions may be available.
- Disbursement: Funds released in phases (“draws”) based on construction milestones.
- Construction Timeline: Usually must be completed within 12 months.
- Builder Approval: Builder must meet lender guidelines for experience and licensing.
Single Close C/P Loan Pros
- Simplifies The Build Process: You don’t need separate loans for construction and your mortgage.
- Rate Protection From Day One: Secure your interest rate before construction starts, protecting you from potential rate increases.
- No Need To Requalify: Once you’re approved, you don’t need to go through a second approval after the home is finished.
- Interest-Only Payments During Construction: Keep your budget flexible while your home is being built.
- Great For Custom Home Projects: If you’re working with a builder or managing your own build, this loan structure fits.
Best for…
Buyers building a custom or semi-custom home
Borrowers wanting fixed-rate security during construction
Families looking for one simple, streamlined loan
Those working with approved builders or general contractors
Homeowners wanting to lock in their rate before construction begins
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