One-Time Close Construction Loan | Build Your Dream Home with One Loan

John Thomas October 17, 2025 Tags: Construction Lending, One-Time Close Construction Loan

Build Your Dream Home with a One-Time Close Construction Loan

Q: How does a One-Time Close Construction Loan work?

You close once at the beginning of the project. PRMI funds the builder in stages during construction, and when the home is finished, your loan automatically transitions into a standard long-term mortgage. You never have to re-qualify or pay for a second closing.

Q: What loan programs offer One-Time Close options?

PRMI offers several One-Time Close Construction Loan programs, including FHA, VA, USDA, and Conventional options. Each program has its own benefits and eligibility requirements to fit different borrower needs.

Q: Do I need to find my own builder?

Yes, you will select your own builder, but PRMI must approve them to ensure they meet our program standards. We work directly with your builder throughout the process to coordinate draws and keep construction on track.

Q: When do I start making payments on a One-Time Close Construction Loan?

During the construction phase, you typically make interest-only payments based on the amount drawn. Once construction is complete and your loan converts to a permanent mortgage, you begin making regular principal and interest payments.

Q: How do I apply for a One-Time Close Construction Loan?

The first step is to get pre-approved. PRMI will review your credit, income, and building plans to match you with the best program. From there, John Thomas will guide you through every step—from selecting a builder to locking your rate and finalizing your closing.

By John Thomas, Loan Officer | Primary Residential Mortgage, Inc.

Have you been dreaming of building your perfect home from the ground up? With a One-Time Close Construction Loan from the John Thomas Team with Primary Residential Mortgage (PRMI), you can purchase your land and build your home—all with one simple loan and one closing. No need to juggle multiple loans, re-qualify after construction, or pay extra closing costs. This is a much better option than the traditional Construction to Permanent Construction Loans as that is a two time close.

What Is a One-Time Close Construction Loan?

A One-Time Close Construction Loan, also known as a construction-to-permanent loan, combines your construction financing and long-term mortgage into a single loan with one closing. This means you only have to qualify once, saving you time, money, and stress throughout the building process.

When construction is complete, your loan automatically converts into a traditional mortgage—no need for a second application or another round of underwriting.

Why Choose John Thomas at PRMI for Your One-Time Close Construction Loan?

At PRMI, we make building your dream home simple and stress-free. Here’s what sets our One-Time Close Construction Loan apart:

One closing and one appraisal — Save on costs and avoid surprises.
Lock your rate upfront — Protect yourself against rising interest rates before construction begins.
Rate float-down option — If rates drop before your home is finished, you can take advantage of the lower rate.
Low down payment options — From 0% down for eligible VA and USDA borrowers to as little as 5% for conventional loans.
Finance your closing costs — Roll them into your loan for easier budgeting.
No need to re-qualify — Once you’re approved, you’re good through closing and completion.

Programs Available Through PRMI

PRMI offers several types of One-Time Close Construction Loans to fit different borrower needs:

FHA One-Time Close Construction Loan – Perfect for buyers with limited down payment funds and flexible credit requirements. Also Offer a 3.5% Down Payment Assistance Program with our FHA OTC Construction Loan through the PRMI Empower Program.
VA One-Time Close Construction Loan – A great option for eligible Veterans and active-duty service members with 0% down.
USDA One-Time Close Construction Loan – Ideal for borrowers looking to build in eligible rural areas with no down payment.
Conventional One-Time Close Construction Loan – Designed for borrowers with strong credit who want flexibility and competitive pricing. Can do as little as 5% down payment.

Hands pointing at home blueprints and digital house plans during construction loan planning meeting in Delaware

See how PRMI’s One-Time Close Construction Loan simplifies the building process from start to finish

How the One-Time Close Process Works

Get pre-approved — We’ll review your credit, income, and project details to determine the best loan option.
Select your builder and finalize plans — Work with an approved builder to design your home and finalize the construction contract.
Close once — Your construction and permanent financing are handled at the same time, so there’s no second closing later.
Build your home — Funds are disbursed to your builder as work is completed.
Move in! — Once construction is complete, your loan automatically converts to your permanent mortgage.

Benefits of the PRMI One-Time Close Loan

Building a new home can feel overwhelming, but our team simplifies the process with clear communication, reliable timelines, and personalized service. You’ll enjoy:

A single, easy-to-manage loan
Protection from rising rates
Low down payment options tailored to your loan type
Dedicated support from start to finish

What are the Eligible Property Types for a One-Time Close Construction Loan?

The following property types are eligible for a PRMI One Time Close Construction Loan:

Single Family Residences (SFR)
Modular Homes
Manufactured Homes
Barndominiums (Must have comparables sales in the area for appraisal)
Kit Homes (Client may need to finance materials because construction loan cannot finance materials until onsite)
Tiny Homes (No minimum square footage but must be able to find comparable sales for appraisal)

Is a One-Time Close Construction Loan Right for You?

If you’ve been searching for the perfect home but can’t find one that fits your needs, building may be the best solution. A One-Time Close Construction Loan is ideal for homebuyers who:

Own or plan to purchase land to build on
Want to design their home from the ground up
Prefer one simple loan with less paperwork and lower costs
Are ready to take advantage of flexible down payment options

Happy Delaware homeowners holding keys in front of their newly built custom home financed with a One-Time Close Construction Loan

From foundation to front door, PRMI helps Delaware families bring their dream homes to life with a One-Time Close Construction Loan.

Let’s Build Something Great Together

Whether you’re building your first home or your forever home, the PRMI One-Time Close Construction Loan can help make it happen. From land purchase to move-in day, I’ll guide you through each step to ensure a smooth, stress-free process. APPLY ONLINE or Call John Thomas at 302-703-0727.

Let’s talk about your project and explore your loan options today!

Contact John Thomas to Get Started

Frequently Asked Questions About One-Time Close Construction Loans

What is a One-Time Close Construction Loan?

A One-Time Close Construction Loan—also called a construction-to-permanent loan—lets you finance the purchase of land and the construction of your home with just one loan and one closing. When construction is complete, it automatically converts into your permanent mortgage.

How does a One-Time Close Construction Loan work?

You’ll close once at the beginning of the project. PRMI funds the builder in stages during construction, and when the home is finished, your loan automatically transitions into a standard long-term mortgage. You never have to re-qualify or pay for a second closing.

What are the benefits of a One-Time Close Construction Loan?

This loan saves time and money by combining construction and permanent financing. You get one closing, one appraisal, and the ability to lock your interest rate before construction starts—with a float-down option if rates drop. Low down payment options and the ability to finance closing costs make it even more flexible.

What loan programs offer One-Time Close options?

PRMI offers several programs to fit different borrowers’ needs, including:

How much down payment do I need for a One-Time Close Construction Loan?

Down payment requirements vary by loan type. VA and USDA One-Time Close loans may allow 0% down, while FHA typically requires as little as 3.5% down, and Conventional programs start around 5% down.

Can I use a One-Time Close Construction Loan if I already own land?

Yes. If you already own your lot, the equity in that land can often be used toward your down payment or closing costs, making it even easier to start construction.

Do I need to find my own builder?

Yes, but PRMI must register the builder to ensure they meet the program standards and our willing to abide by the loan guidelines. We work directly with your builder throughout the process to coordinate draws and keep construction on track.

When do I start making payments on a One-Time Close Construction Loan?

During the construction phase, the construction interest is already included in the purchase price so there are no payments during construction. Once construction is complete and your loan converts to a permanent mortgage, you begin making regular principal and interest payments.

Who is eligible for a One-Time Close Construction Loan in Delaware?

Eligibility depends on your credit score, income, and debt-to-income ratio. PRMI offers flexible guidelines for qualified borrowers using FHA, VA, USDA, or Conventional financing. Contact me directly for a personalized review of your eligibility. Call Now at 302-703-0727.

How do I apply for a One-Time Close Construction Loan?

The first step is to get pre-approved. We’ll review your credit, income, and building plans to match you with the best program. From there, I’ll guide you through every step—from selecting a builder to locking your rate and finalizing your closing. APPLY NOW

Still have questions? I’m here to help you build your dream home with confidence. Contact me today to schedule a free consultation about your One-Time Close Construction Loan options in Delaware.

Disclaimer: Not all borrowers will qualify. Loan terms and eligibility subject to credit approval and program guidelines. Primary Residential Mortgage, Inc. NMLS #3094. Equal Housing Lender.