Conventional One-Time Close Construction Loan

Build Your Dream Home With Just 5% Down

One loan. One closing. One set of closing costs. Set your interest rate before construction starts with a float-down to a lower rate at completion if rates drop — and roll your land, build, and permanent mortgage into a single, simple loan with Pete Metz right here in Redding.

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5%Minimum Down

1Closing, Not Two

Float-DownRate Protection

How It Works

One Loan From Land to Living Room

A traditional construction loan means closing twice — once on the construction loan, then again on a permanent mortgage when the house is done. A one-time close rolls all of that into a single loan, with a single approval and a single set of closing costs.

01

Get Pre-Approved

We review your income, credit, and project plans. You'll know your budget, your rate, and what 5% down looks like — before you commit to a builder.

02

Close Once, Set Your Rate

You close on land, construction, and permanent financing in a single transaction. Your rate is set up front and protected from rate increases. If rates drop before completion, your loan floats down to the lower rate automatically.

03

Build (Interest-Only)

The lender pays your builder in draws as construction progresses. You only pay interest on what's been drawn — keeping payments low during the build.

04

Move In

When the home is finished, your loan automatically converts to a standard 30-year mortgage. No second closing, no second appraisal, no second stack of paperwork.

Traditional Two-Close

Two separate closings, two sets of fees
Re-qualify when construction ends
Rate exposure during the entire build — pay whatever rates are when you convert
Risk of denial at conversion if your situation changes
Often 20%+ down required

Von Mortgage One-Time Close

One closing, one set of fees
Approved once, for the full project
Float-down rate: protected up, floats down
Automatic conversion to permanent mortgage
As little as 5% down on conventional

Why Borrowers Choose This Loan

Built for Modern Buyers Who Want to Build

Just 5% Down

Most construction loans require 20% or more. Conventional one-time close lets qualified buyers build with as little as 5% down on the total project cost.

Float-Down Rate Protection

Your rate is set at closing, before the foundation is poured. If rates rise during construction, you keep your lower rate. If rates drop, your loan automatically floats down to the lower rate at completion. Protection up, benefit down.

Interest-Only During Build

You only pay interest on the funds drawn so far. Payments stay manageable while your home is under construction, even if you're also paying rent or another mortgage.

One Set of Closing Costs

Instead of paying closing costs twice (construction loan + permanent loan), you pay once. That's typically thousands of dollars back in your pocket.

No Re-Qualification

Approved once for the whole project. If your income changes or rates spike during the build, your loan is locked in. You won't lose your home over a job change.

Finance the Land Too

If you don't own the lot yet, we can wrap the land purchase into the same loan. One transaction covers everything from raw dirt to move-in day.

Redding
Shasta
NorCal We know the area

Local Lender, Local Knowledge

I've helped clients build everywhere from Bella Vista and Palo Cedro to Cottonwood, Anderson, and out toward Trinity. I know the local builders, the appraisers who handle new construction, and the quirks of building on land with well and septic. That experience saves you time and headaches at every draw.

Who Qualifies

The Basics for Conventional One-Time Close

Every situation is different — these are the general guidelines I look at when we first talk. If you're close on some and not others, that's okay. Give me a call and we'll find out exactly where you stand.

Guidelines vary by investor and project. Final approval is subject to full underwriting. This page is informational, not a commitment to lend.

Credit ScoreTypically 680+ for the best terms; we can sometimes work with lower depending on the full picture.
Down PaymentAs little as 5% of total project cost (land + construction). More down can mean a better rate.
Debt-to-IncomeGenerally up to 45%. We count the future mortgage payment, not the interest-only build payment.
Approved BuilderYour builder needs to be licensed, insured, and approved by the lender. Most established Redding-area builders qualify easily.
Plans & SpecsYou'll need a signed builder contract, plans, specs, and a cost breakdown before we can issue final approval.
Property TypePrimary residence or second home, single-family detached. ADUs and certain manufactured homes may qualify.
Build TimelineMost projects complete in 9–12 months. The loan allows for an extension if weather or supply delays push you out.

Frequently Asked

Questions Buyers Ask Me Every Week

With a traditional (two-time) construction loan, you close on a short-term construction loan first, then close again on a permanent mortgage when the home is finished. That means two appraisals, two sets of fees, and a second underwriting where your income, credit, and rates all get re-evaluated. A one-time close rolls all of that into a single transaction with one rate locked up front.

Yes — for qualified buyers, the conventional one-time close allows 5% down on the total project cost (land plus construction). That's a huge change from the 20–25% most local banks require. Your final terms depend on credit, debt-to-income, and the specific scenario, which is exactly what we'll look at on our first call.

Your rate is set at closing, before construction starts — and it works in your favor either way. If interest rates rise while your home is being built, you keep your original (lower) rate. If rates drop before construction is complete, your loan automatically floats down to the lower rate at conversion. You can't lose. It's protection on the upside and benefit on the downside.

The exact float-down terms (when it locks, how it's measured) vary by program, and I'll walk you through the specifics on our call.

No. If you've already found the lot, we can purchase it at closing as part of the same loan. If you already own land outright, your equity in the land typically counts toward your down payment — sometimes covering it entirely.

Usually not. Lenders need a licensed, insured builder with experience and references. I work with builders all over Shasta County and beyond, and getting a new builder approved is a straightforward part of the process. Send me their info and I'll let you know within a day or two.

Depends on the property. Detached ADUs on a primary residence can qualify in some scenarios, and certain "barndominium" or post-frame builds work if they appraise as residential. Manufactured homes have their own rules. Easiest answer: tell me what you're building and I'll pull the specific guidelines for that property.

If you're a veteran or active-duty service member, almost certainly yes — VA one-time close has zero down payment, no monthly mortgage insurance, and no payments during the build. Take a look at our VA 100% one-time construction loan page first.

Veteran or active-duty? See the VA 100% construction option →

Ready to Build?

Let's See What Your Build Could Look Like

A 15-minute call is enough to know if this loan fits your project — your budget, your timeline, and your land. No pressure, no commitment. Just answers.