Mortgage Myth #3 — You Can’t Build a Home Without Closing Twice
The Truth About One-Time Close Loans: You Don’t Need Two Closings to Build a Home
Too many buyers — and even lenders — are still operating with outdated information when it comes to construction loans. One of the most persistent myths in real estate? That you have to close twice when building a home: once for the construction phase and again for the final mortgage.
That used to be true. It’s not anymore.
Welcome to the power of the One-Time Close construction loan — a modern mortgage solution that wraps your lot purchase, construction costs, and long-term financing into a single closing.
What Is a One-Time Close (OTC) Loan?
A One-Time Close (OTC) construction loan consolidates three major phases of the homebuilding process:
- Lot or land acquisition
- Construction financing
- Final mortgage/permanent financing
All under one loan. One underwrite. One closing. One rate lock, with a float down option once the home is completed and you've moved in.
Why It Matters:
Traditional construction loans — aka Two-Time Close loans — require buyers to qualify twice. That introduces rate-lock risk, appraisal rework, underwriting surprises, and double the cost in closing fees.
With an OTC, we can:
- Lock your rate before construction starts (and relock if rates drop)
- Eliminate the risk of denied re-approval
- Streamline builder draws and title updates
- Reduce fees by avoiding a second close entirely
Who Qualifies for One-Time Close Loans?
We offer OTC options across:
- VA (0% down)
- USDA (0% down in eligible rural areas) - COMING SOON!
- FHA (3.5% down)
- Conventional (as low as 5% down)
Many of our borrowers are first-time buyers, move-up families, or rural homeowners frustrated by inventory.
Why This Myth Hurts Buyers:
This misconception pushes people into bidding wars on existing homes they don’t love — when building a custom or semi-custom home could be just as attainable.
Next Steps:
If you’re a buyer (or a partner with buyers) who thought building meant doubling your fees and stress, let’s talk. OTC may be the smarter path — and we’ll guide it all the way to move-in day.
📥 Want a step-by-step guide to building with confidence?
Grab our free New Construction Guide → Found Here
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Want to see other myths, check them out here.
