One-Time Close
option locks rate upfront

Up to 85%
loan-to-cost on qualified projects

$500K–$10M+
loan amounts

12–18 months
construction period

Spec Builders (Investment)

• Build to sell — close as soon as the CO is issued
• Qualify based on builder experience and project financials
• Two-time close: construction loan + sell-off or bridge to perm
• Higher LTV available with experienced builder track record
• Portfolio approach — can manage multiple projects simultaneously
• Fast construction draws released as milestones are completed

Owner-Occupied (Primary Residence)

• One-Time Close (OTC): construction and 30-year mortgage in one closing
• Rate locks at the start — no rate risk during construction
• Converts to permanent mortgage automatically at CO
• Only one set of closing costs
• Works with custom builders and semi-custom home packages
• Lot purchase can often be included in the loan

Draw Schedule (Typical)

• Draw 1: Foundation complete — typically 10–15% of construction budget
• Draw 2: Framing complete — 20–25% of budget
• Draw 3: Mechanical rough-in (HVAC, plumbing, electrical) — 15–20%
• Draw 4: Drywall and insulation — 10–15%
• Draw 5: Interior finish — 20–25%
• Final Draw: Certificate of occupancy issued

Qualification Requirements

• Minimum 680 credit score
• Licensed general contractor required (GC agreement needed)
• Detailed construction budget and architectural plans
• Building permits or permit-ready drawings
• Lot owned or purchase concurrent with construction loan
• Construction completion reserves typically required

What is a One-Time Close (OTC) construction loan?
A One-Time Close combines the construction loan and the permanent mortgage into a single loan with one closing. Your rate locks at the start. When construction completes and CO is issued, the loan automatically converts to your permanent mortgage. You avoid a second close and second set of costs.

Can I be my own general contractor?
Owner-builder programs exist but are more limited. Most construction loan programs require a licensed, insured general contractor to manage the build. If you’re a licensed contractor yourself, that typically satisfies the requirement.

What if construction takes longer than the loan term?
Most construction loans have extension options built in. We structure the initial term to be realistic for your project. If delays occur, extensions are typically available at a modest fee. Communication is key — flag timing issues early.

Can I include the land purchase in the construction loan?
Yes. If you’re purchasing the lot and building, many programs will finance both under a single construction loan. If you already own the lot, its equity can count toward the equity requirement.

What does interest-only mean during construction?
During the construction phase, you only pay interest on the funds actually disbursed — not the full loan amount. Your monthly payment starts small and grows as draws are released. Once construction completes, it converts to a standard principal + interest payment.

Do I need to have a buyer lined up for a spec build?
No. Spec construction loans are originated without a pre-sale. The underwriting is based on the completed market value and your builder experience. A pre-sale can sometimes improve terms, but it’s not required.