Loan Program
Build the House. I’ll Handle the Financing Timeline.
Building means coordinating a lender, a builder, a draw schedule, and a permanent loan at the same time. A one-time close wraps all of it into a single loan with a single set of closing costs and one rate lock.
Construction Loans: What You Need to Know
A construction loan is really two loans pretending to be one: the money that funds the build, and the mortgage that replaces it when the house is finished. A one-time close does exactly what the name says — you close once, lock once, and pay closing costs once. That removes the biggest risk in building, which is qualifying all over again at the end while rates have moved.
Who This Is For
- Buyers building a custom home on a lot they own or are purchasing
- Families who cannot find what they want in existing inventory around Georgetown and Williamson County
- Buyers working with a licensed builder on a new construction contract
- Owners planning a major renovation or teardown-rebuild on an existing property
- Anyone who wants their construction rate locked before the first shovel hits dirt
How It Works
Your Construction Loans Roadmap
No mystery steps, no waiting a week to hear back. Here is exactly how the process runs from first call to closing table.
- 1
Qualify the borrower and the project
Construction underwriting reviews you and the build. We look at your credit, income, and reserves alongside your lot, plans, budget, and builder credentials.
- 2
Builder review and appraisal
The builder submits licensing, insurance, and references. The appraiser values the home as-completed from your plans and specifications, which sets the loan amount.
- 3
Close once, then build
You close on the combined loan before construction begins. Lot payoff or purchase happens at that closing, and the construction reserve is set aside for draws.
- 4
Draws, inspection, and conversion
Funds release in stages as inspections confirm progress. When the certificate of occupancy is issued, the loan converts automatically to your permanent mortgage — no second application.
Key Benefits
Why Borrowers Choose This Program
One closing, one set of costs
A one-time close combines the construction period and the permanent mortgage into a single transaction. You avoid paying title, appraisal, and lender fees twice, which commonly saves several thousand dollars.
Rate protection through the build
Your permanent financing terms are set at the original closing. If rates rise during a nine-month build, you are already locked. Extended lock and float-down options are available on some programs.
Interest-only during construction
You pay interest only on the funds actually drawn, not the full loan amount. Payments start small and step up as the house takes shape, which keeps cash flow manageable if you are also paying rent or an existing mortgage.
Managed draw schedule
I coordinate inspections and draw releases with your builder so trades get paid on schedule and the project does not stall waiting on funding.
The Draw Schedule
How the Money Actually Reaches Your Builder
Construction funds are not handed over at closing. They release in stages as verified work is completed, which protects you, the lender, and the project.
- Draw 1
Site work and foundation
Lot clearing, excavation, forms, and slab. Inspected before funds release.
- Draw 2
Framing and roof dry-in
Structure up, sheathing and roofing complete, house weathertight.
- Draw 3
Mechanical rough-in
Plumbing, electrical, and HVAC installed and inspected behind the walls.
- Draw 4
Insulation and drywall
Interior takes shape. Often the longest stretch between inspections.
- Draw 5
Finish-out
Cabinets, flooring, fixtures, paint, and trim.
- Final
Certificate of occupancy
Final inspection, title update, and automatic conversion to your permanent mortgage.
Build a contingency into the budget
Every build has change orders. We typically finance a 5% to 10% contingency inside the loan amount so a mid-project decision does not become a cash crisis. If you never use it, you never pay interest on it.
At a Glance
The Numbers, Plainly
Guidelines shown are general and current as of publication. Program availability varies by state, property, and borrower eligibility, and all loans are subject to full underwriting approval.
- Minimum down payment
- Typically 10%–20% of total project cost; lot equity often counts
- Typical credit score
- 700+ for most one-time close programs
- Construction period
- 6–12 months, extensions available
- Payments during build
- Interest-only on drawn funds
- Permanent loan options
- Conventional, VA, FHA, or jumbo depending on the amount
- Closings required
- One
Myths & Misconceptions
Things People Believe That Cost Them Money
You need to pay cash for the lot first.
Lot purchase can usually be rolled into the construction loan. If you already own the lot, its equity typically counts toward your down payment, sometimes covering it entirely.
You have to requalify when the house is done.
That is true of two-time close construction loans, and it is exactly the risk a one-time close eliminates. Your permanent terms are set at the original closing.
Only wealthy buyers can build.
Building is often competitive with buying existing inventory, particularly when you already own land. The real requirements are a credible builder, a realistic budget, and enough contingency for change orders.
Client Experience
“The best mortgage experience we have ever had.”
Custom Home Client
Liberty Hill, TX
Testimonials reflect individual experiences. Results vary and are not a guarantee of future outcomes.
Not sure this is your program?
That is what the free strategy call is for. Twenty minutes, no obligation, and you leave knowing which financing path actually fits your situation.
Book a Free Strategy CallQuestions
Construction Loans FAQs
It is a single loan that funds construction and then converts into your permanent mortgage when the home is complete. You close once, lock your permanent rate once, and pay one set of closing costs instead of two.
Funds release in stages tied to completed work — foundation, framing, mechanical, drywall, finish-out. An inspector verifies each stage before the draw is released to your builder. I manage that coordination so the schedule holds.
Interest-only on the amount actually drawn. Early in the build that is a small payment, and it grows as more of the loan funds. Full principal and interest begins when the loan converts to permanent financing.
Yes, VA one-time close construction financing exists, though fewer lenders offer it and builder requirements are stricter. If you are a veteran planning to build, that conversation should happen before you sign a builder contract.
We build a contingency into the loan amount at the outset, typically 5% to 10%. Change orders beyond that generally come out of pocket, which is why an accurate initial budget from your builder matters so much.
Let’s Solve Your Mortgage Situation.
Apply online in about 12 minutes, or grab a free 20-minute strategy call. Either way, you’ll leave knowing more than you do right now.