Two ways to build — which one fits your timeline and strategy?

If you’re building a new home, one of the biggest decisions you’ll make (before breaking ground) is how you finance the construction.

There are two main options:

1. A Construction-to-Permanent Loan (One-Time Close)
2. A Two-Time Close Construction Loan

👉 Both get the job done — but they work differently behind the scenes.

Let’s compare the two, so you can choose the path that fits your budget, timeline, and long-term goals.

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✅ What Is a Construction-to-Permanent Loan?

Also called a one-time close, this structure combines:

• Your construction financing
• And your permanent mortgage

You close once, before construction starts.
Then, when the build is finished, the loan automatically converts into your long-term mortgage (usually a 15- or 30-year fixed loan).

✔️ Pros:

• One closing = fewer fees
• Lock your interest rate upfront
• Smooth transition from building to owning
• Simpler process overall

⚠️ Cons:

• Rate lock happens before construction — no flexibility if rates drop
• May require more upfront paperwork

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🔁 What Is a Two-Time Close Construction Loan?

This involves two separate loans:

• One loan covers construction only
• The second loan is your standard mortgage, secured after the home is complete

You’ll close twice — once before building, and again before moving in.

✔️ Pros:

• Potential to lock in a lower rate when the home is done
• More flexibility if your plans or financing needs evolve
• Can sometimes qualify with a smaller down payment upfront

⚠️ Cons:

• Two sets of closing costs
• More paperwork, more moving parts
• Need to requalify for the final mortgage

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📊 Side-by-Side Comparison

Feature	One-Time Close	Two-Time Close
Closings	One	Two
Rate Lock	Before construction	At permanent phase
Qualification	Once, upfront	Twice (construction & permanent)
Costs	Lower overall	More total fees
Flexibility	More structured	More adjustable
Risk of Delay	Lower	Slightly higher
Best For	Simplicity, predictability	Flexibility, rate shoppers

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🧠 Which One Is Right for You?

Choose a Construction-to-Perm Loan if:

• You want a simpler, one-time process
• You prefer to lock your interest rate early
• You want to avoid requalifying later
• You have stable income and strong credit

Choose a Two-Time Close if:

• You’re building over a longer timeline
• You want to wait and see what mortgage rates do
• You may want to change loan type later
• You’re working with a builder that requires it

📘 We’ll walk through your goals, builder relationship, and timeline to recommend the best structure.

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🏢 Why PRMI?

At PRMI, we offer both construction loan structures, and help you:

• Understand your cost breakdown and approval path
• Lock in financing that matches your project and payment strategy
• Navigate builder approvals, draw schedules, and documentation
• Transition from plans to move-in — with a clear roadmap

We’re your builder-friendly, borrower-first lending partner from blueprint to closing day.

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👇 Want Help Deciding Between One-Time and Two-Time Close?

Let’s run the numbers on both — and show you what makes the most sense for your build.