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.
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.
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.
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.
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.
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.
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.
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.
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.
Instead of paying closing costs twice (construction loan + permanent loan), you pay once. That's typically thousands of dollars back in your pocket.
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.
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.
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.
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.
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.
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.
Prefer to talk? Call Pete directly at (530) 221-7700
We are eager to hear from you
2777 Bechelli Lane Redding, Ca 96002
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