One-Time Close Construction Loans in California

What Is a One-Time Close Construction Loan?
A One-Time Close Construction Loan brings your whole financing process together by combining your construction loan and your permanent mortgage into one. Instead of handling two closings and paying fees twice, everything is taken care of upfront in a single appointment. Your long-term financing is set before the build even starts, which gives you a ton of peace of mind. Once your home is finished, the loan simply rolls into your standard mortgage. It’s a great option for California buyers who want a smoother, more predictable experience while building their home.

One-Time Close vs. Two-Time Close Construction Loans
A traditional two-time close requires one loan to fund the build and another after the home is complete. That often means extra fees and possibly facing new loan terms later. With a One-Time Close Construction Loan, both are wrapped into one transaction. You close once, your permanent financing is already in place, and you avoid the hassle of going through the process twice while your home is under construction.

Loan Program Options and Requirements
At US Lending Company, we offer Conventional, FHA, and VA One-Time Close Construction Loans so you can pick the program that fits best. Conventional loans can go as low as 5% down with a minimum credit score of 700. FHA loans offer flexibility with just 3.5% down and a minimum 580 score. VA One-Time Close options allow eligible active-duty military and veterans to build with 0% down and a minimum 660 score. These programs give California homebuyers the flexibility to build the home they’ve envisioned—without having to juggle multiple loans.

Eligible Projects and Builder Requirements
These loans are designed to work with licensed, approved builders. Owner-builder setups aren’t allowed. Working with a qualified builder ensures everything meets program standards, from the plans and timeline to the overall budget. Your builder will provide all required documents before the loan is finalized so the project stays aligned with your approved financing.

Common Questions About One-Time Close Loans

• Can this loan be used for modular or manufactured homes?

Depending on the loan program and property details, it may be possible. I can help you review eligibility.

• What happens if construction goes over budget?

A contingency fund—usually up to 10%—is built into the loan to help cover unexpected costs. Anything you don’t use goes directly toward lowering your balance at the end.

• Do I make payments during construction?

During the build, payments are typically interest-only based on the amount drawn. Once the home is complete, the loan converts into your long-term mortgage with normal principal and interest payments.