Two common structures
- Construction-to-perm (one-time-close): one loan, one set of closing costs, converts automatically at completion.
- Two-close: separate construction and end loans. More flexibility on the permanent mortgage; two sets of closing costs.
What lenders look for
- Debt-to-income ratio including the future permanent payment.
- Liquid reserves after closing, typically 6–12 months of payments.
- A licensed builder with verifiable history.
- A complete plan set and written specification.
- An appraisal subject-to-completion at or above total project cost.
See also
Last updated June 29, 2026. Reviewed against our editorial policy.