New Construction One-Time Close Loans

We offer:

• Conventional one-time close construction loans up to conforming loan limits

• VA one-time close construction loans up to $4 million

• The ability to roll the land purchase into the construction loan

• The ability to use land equity toward down payment if the lot is already owned free and clear

• If there is an existing land loan, this loan can be used to pay off that land loan

• Interest-only payments during construction on the conventional option, based on the drawn loan balance each month

• No required monthly mortgage payments during construction on our VA option

• A firm 11-month construction loan period

• A loan modification process at the end of construction to begin the 30-year fixed term

• A review at modification to determine whether the rate may be lowered based on market conditions at that time

What Is a One-Time Close Construction Loan?

A one-time close construction loan, sometimes called a single-close construction loan, combines the financing for the land, the construction phase, and the permanent mortgage into one overall loan structure.

Instead of using one loan to buy the lot, another loan to build the home, and then a separate mortgage after completion, the financing is set up from the beginning and transitions into the long-term mortgage once the home is finished.

For borrowers building a new primary residence, this can create a simpler and more efficient way to move from lot and plans to a completed home.

Land Purchase and Land Equity Options

One of the biggest questions with new construction financing is how the land is handled. Our one-time close construction loan options can accommodate several common scenarios.

If You Need to Buy the Land

If you do not already own the lot, the land purchase can be rolled into the construction loan. This allows the lot acquisition and home construction to be financed together as part of the overall project.

If You Already Own the Land Free and Clear

If you already own the lot free and clear, the value of that land may be used toward your down payment or equity requirement, depending on the loan structure and full scenario. This can be a major advantage for borrowers who purchased land in advance and want to use that equity when moving forward with construction.

If You Have a Land Loan on the Lot

If there is already a land loan on the property, the new construction loan can be used to pay off that existing land loan as part of the overall financing structure.

This is one of the most important sections of the page because many borrowers do not realize there may be flexibility depending on whether they are buying the lot now, already own it, or still owe money on it.

Our One-Time Close Construction Loan Options

We currently offer two primary one-time close construction loan options for eligible borrowers: Conventional and VA.

Conventional One-Time Close Construction Loan

Our conventional one-time close construction loan is available for loan amounts up to conforming loan limits.

This option may allow:

• The land purchase to be rolled into the loan

• Land value to be used toward down payment or equity if the lot is already owned free and clear

• An existing land loan to be paid off through the new construction financing structure

During construction, borrowers make interest-only payments based on the amount of the loan that has been drawn each month. This means payments are based on the outstanding drawn balance during the build phase, not the full permanent loan amount from day one.

At the end of construction, the loan goes through a modification process to begin the 30-year fixed mortgage term. At that time, the rate is also reviewed to determine whether it may be lowered based on market conditions.

VA One-Time Close Construction Loan

Our VA one-time close construction loan is available for eligible VA borrowers and offers:

• Loan amounts up to $4 million

• 0% down payment for eligible borrowers, or the required minimum down payment under VA guidelines depending on entitlement and loan size

• The ability to roll the land purchase into the loan

• The ability to use land equity toward required investment if the lot is already owned free and clear, depending on the scenario

• The ability to pay off an existing land loan through the new construction financing structure

• No required monthly mortgage payments during construction

• A loan modification process at the end of construction to begin the 30-year fixed mortgage term

• A review at modification to determine whether the rate may be lowered based on market conditions at that time

For eligible VA borrowers building a primary residence, this can be a powerful option when compared with other construction financing structures.

Construction Timeline

Both our Conventional and VA one-time close options are structured with a firm 11-month construction loan period.

Once construction is complete, the loan transitions through the modification process and the 30-year fixed term begins.

If construction is delayed due to things like weather, supply shortages, or other build-related issues, extensions are often available when warranted by the situation.

What Payments Look Like During Construction

One of the biggest questions with a construction loan is what the borrower pays while the home is being built.

With our Conventional one-time close option:

• Payments are interest only

• Payments are based on the drawn loan balance each month

With our VA one-time close option:

• There are no required monthly mortgage payments during construction under the structure we offer

This is one of the biggest differences between the two options and one of the most important things to compare early in the planning process.

What Happens When Construction Is Complete?

At the end of construction, both the Conventional and VA one-time close options go through a loan modification process.

That modification process is what transitions the loan from the construction phase into the 30-year fixed mortgage term.

At that point, the rate is also re-evaluated based on market conditions to determine whether it may be lowered for the permanent phase of the loan.

This gives borrowers a clear path from construction financing into long-term home financing without needing to start over with a completely separate loan structure.

Conventional vs VA One-Time Close Construction Loan

Both options can be strong, but they solve different needs.

A Conventional one-time close loan may be a good fit for borrowers who:

• Are financing within conforming loan limits

• Want a one-time close structure

• Need to finance the lot as part of the project

• Want to use owned land equity toward down payment if applicable

• Are comfortable making interest-only payments during construction based on monthly draws

A VA one-time close loan may be especially attractive for eligible borrowers who want:

• Higher loan amount flexibility

• Low or no down payment depending on entitlement and structure

• No required monthly mortgage payments during construction

• No monthly mortgage insurance

• Flexibility to finance land, use owned land value, or pay off an existing land loan

• A one-time close structure that transitions into a 30-year fixed loan after completion

Conventional One-Time Close Highlights

Our conventional one-time close construction loan highlights include:

• Loan amounts up to conforming loan limits

• Land purchase may be rolled into the loan

• Owned land value may be used toward down payment or equity requirement if free and clear

• Existing land loan may be paid off through the loan

• Firm 11-month construction period

• Interest-only payments during construction

• Payments based on the drawn loan balance each month

• 30-year fixed term begins after construction is complete

• Loan modification process at completion

• Rate reviewed at modification to determine whether it may be lowered based on market conditions

• Extensions may be available for construction delays when warranted

VA One-Time Close Highlights

Our VA one-time close construction loan highlights include:

• Loan amounts up to $4 million

• 0% down payment for eligible borrowers, or VA minimum required down payment based on loan amount and entitlement

• Land purchase may be rolled into the loan

• Owned land value may be used toward required investment if applicable

• Existing land loan may be paid off through the loan

• Firm 11-month construction period

• No required monthly mortgage payments during construction

• No monthly mortgage insurance

• 30-year fixed term begins after construction is complete

• Loan modification process at completion

• Rate reviewed at modification to determine whether it may be lowered based on market conditions

• Extensions may be available for construction delays when warranted

Primary Residence Financing

Our one-time close construction loan options are designed for primary residence financing.

If you are planning to build your main home and want a construction loan that can finance the lot, construction, and permanent mortgage together, these options may be worth comparing side by side.

Why Borrowers Consider a One-Time Close Construction Loan

A one-time close construction loan may be attractive because it helps simplify the financing process from the beginning of the build through the completion of the home.

Depending on the option used, borrowers may benefit from:

• One overall financing structure from land through permanent mortgage

• The ability to roll in the lot purchase

• The ability to use owned land equity if the lot is free and clear

• The ability to pay off an existing land loan

• Clear payment expectations during the build phase

• A 30-year fixed term starting after construction is complete

• The opportunity to review the rate at modification based on market conditions

• Flexibility if construction delays create a need for extra time

New Construction One-Time Close Loans FAQs

What is a one-time close construction loan?

A one-time close construction loan combines the lot financing, construction phase, and permanent mortgage into one overall loan structure that transitions after the home is completed.

Can the land purchase be included in the loan?

Yes. If you need to buy the lot, the land purchase can be rolled into the construction loan.

What if I already own the land?

If you already own the lot free and clear, the land value may be used toward your down payment or equity requirement, depending on the loan structure and scenario.

What if I still have a land loan?

If there is an existing land loan on the lot, this loan can be used to pay off that land loan as part of the new construction financing.

Do you offer conventional construction loans?

Yes. We offer conventional one-time close construction loans up to conforming loan limits.

Do you offer VA construction loans?

Yes. We offer VA one-time close construction loans for eligible borrowers.

How long is the construction period?

Both our VA and Conventional one-time close options are structured with a firm 11-month construction period.

What do I pay during construction on the conventional option?

With our Conventional one-time close option, borrowers make interest-only payments during construction based on the drawn loan balance each month.

Do I make monthly mortgage payments during construction on the VA option?

Under the structure we offer, there are no required monthly mortgage payments during construction on the VA one-time close option.

When does the 30-year mortgage start?

The 30-year fixed term begins after construction is complete, following the loan modification process.

Can the rate change after construction?

At the time of modification, the rate is re-evaluated based on market conditions to determine whether it may be lowered for the permanent phase of the loan.

What happens if construction takes longer than 11 months?

If delays happen because of weather, supply shortages, or other construction-related issues, extensions are often available when warranted by the situation.

How much can I finance with the VA one-time close construction loan?

Our VA construction one-time close option is available for loan amounts up to $4 million.

New Construction One-Time Close Loans in Indiana

We help borrowers in Indiana compare one-time close construction loan options for building a new primary residence. Whether you are buying the lot now, already own it free and clear, or need to pay off an existing land loan, we can help you compare Conventional and VA structures based on loan amount, construction-phase cash flow, and long-term payment strategy.

Ready to Compare Your Construction Loan Options?

If you are planning to build a home, we can help you compare Conventional and VA one-time close construction loan options based on your eligibility, lot situation, loan amount, down payment, and goals.