Construction financing
Close once. Build. Move in.
A one-time-close construction loan funds the build and becomes your mortgage at the end — no second closing, and no re-qualifying at whatever rates exist nine months from now.
How it runs
Six stages, one closing.
The risk a two-close structure carries
With a two-close, you take a short-term construction loan, build the house, and then get a separate mortgage at the end. It sounds administratively fussy and nothing more. It isn't.
You have to qualify twice. If your income changes, you take on a car payment, your credit dips, or the market moves against you during a nine-month build, that second approval is not guaranteed. People have finished a house and been unable to finance it.
One-time-close removes that entirely — you're approved once, at the start, for the whole thing. It also means one set of closing costs instead of two.
Building around here
New construction is a big share of what's happening across Union County — Waxhaw, Weddington, Wesley Chapel and Indian Trail especially. A few things worth knowing before you commit.
If you already own the lot, its value usually counts toward your equity, which can cut the cash you need at closing significantly.
If you're using a builder's preferred lender, get a second quote anyway. Incentives toward closing costs are sometimes genuinely good and sometimes priced back into the rate. I'll tell you honestly which one you're looking at, even when the answer is that theirs is the better deal.
If the finished value lands above the conforming limit — common enough out here — then this is a jumbo construction conversation, and the lender list is shorter. Worth establishing early rather than late.
Construction loan questions
What is a one-time-close construction loan?
A single loan that funds the build and then converts to your permanent mortgage when the house is finished — one application, one approval, one set of closing costs. The alternative, a two-close structure, means a short-term construction loan followed by a separate refinance into a mortgage at the end. That second closing costs money and, more importantly, requires you to re-qualify at whatever rates exist by then.
Which structure should I use?
One-time-close is usually the safer choice, because the risk it removes is real: if your income changes, your credit dips, or rates move sharply during a nine-month build, a two-close borrower can find themselves unable to finance the house they just built. Two-close occasionally wins on cost or flexibility, particularly for experienced builders. It's worth pricing both.
How does the money actually get released?
In draws, against completed work. Foundation, framing, dry-in, and so on — the lender inspects each stage before releasing the next tranche, and you generally pay interest only on what's been drawn rather than the whole loan. Your builder needs to be comfortable with that rhythm, because it affects their cash flow as much as yours.
What happens to my rate during the build?
This is the question to ask early. Some one-time-close programs offer an extended rate lock covering the whole construction period, sometimes with a float-down if rates improve before you convert. Others lock only at completion, which leaves you exposed for the length of the build. That single detail can matter more than the rate you're quoted on day one.
How much do I need down?
Generally more than a purchase — often 10% to 20%, sometimes more depending on the lender and whether you already own the land. If you own the lot outright, its value usually counts toward your equity, which can substantially reduce the cash you need at closing.
Does my builder need to be approved?
Almost always. Lenders review the builder's licence, insurance, financial standing and track record, and some maintain approved-builder lists. If you've chosen someone small or you're planning to owner-build, tell me at the start — it narrows the lender list considerably and it's much better handled before you're committed.
What about cost overruns?
Build a contingency into the loan from the beginning — most lenders expect one, commonly around 5% to 10% of the build cost. Change orders and overruns are normal rather than exceptional, and the borrowers who struggle are almost always the ones who budgeted for the quote exactly and left themselves nothing.
Planning a build?
Tell me where you are — lot bought, builder chosen, or still working it out. Earlier is genuinely better on these.
Ready to apply properly? Skip the questions and start the secure application — about fifteen minutes, and it's the same form we'd fill in together anyway.
Prefer to just talk? Call or text (704) 287-8746.