Quick Answer
It typically takes 45 to 60 days to close a one-time close construction loan, though some cases may extend to 75 days or longer. Factors that affect the timeline include builder documentation, appraisal delays, loan type (VA or FHA), and the completeness of your file. Early preparation and choosing an experienced lender can significantly reduce the risk of closing delays.
What is a one-time close construction loan?
A one-time close construction loan combines your construction financing and permanent mortgage into a single transaction. Unlike traditional construction loans, which require two separate closings: one for construction and another for the permanent loan.
Once your home is built and passes final inspections, the loan automatically converts to a traditional fixed-rate mortgage. There is no need to requalify or pay closing costs again.
Because it merges two loan types, the closing process involves additional steps, including builder approval, detailed budget reviews, and a specialized appraisal.
Work with GO Mortgage, a lender experienced in single-close construction, to close faster.
General timeline to close a one-time close loan
While every situation is unique, most one-time close loans close in 45 to 60 days. More complex builds or loans under FHA or VA programs may take up to 75 days or more.
Here is a general timeline:
| Stage | Typical Duration | Key Actions |
| Application and pre-approval | 3–7 days | Submit credit, income, and employment info |
| Builder review and approval | 10–20 days | Submit plans, permits, signed builder contract |
| Appraisal and feasibility | 7–14 days | Appraiser evaluates plans and market value |
| Underwriting and conditions | 7–10 days | Loan team reviews file and requests corrections |
| Closing disclosure period | 3 business days (minimum) | Review and sign closing disclosures |
| Title and escrow prep | 3–7 days | Final loan docs prepared and scheduled |
Factors that affect your loan closing timeline
Several variables determine how long it takes to close your one-time close construction loan. Here’s a breakdown of the most common factors:
1. Builder and project documentation
The builder must be vetted and approved by the lender. Lenders usually require:
- A signed construction contract
- A complete set of building plans and specifications
- A line-item construction budget
- Evidence of insurance and licensing
- Building permits or confirmation of permit application
If your builder isn’t experienced with one-time close loans or delays paperwork, your timeline can extend significantly.
2. Appraisal process
Unlike standard mortgages, a construction loan appraisal is based on the “as-completed” value of your future home. The appraiser must review your:
- Floor plans
- Site location
- Construction materials
- Comparable sales for similar homes
Appraisals in rural areas or for custom builds often take longer to complete and review.
3. Loan type
FHA and VA one-time close loans have additional requirements that may affect your timeline:
- FHA loans: Require a HUD-approved builder, energy efficiency checks, and specific documentation.
- VA loans: Require a VA appraisal and adherence to VA construction standards.
Both programs may involve longer review periods by underwriters or government entities.
4. Underwriting delays
Underwriters must review all borrower and builder documentation, and any discrepancies or missing items can trigger conditions. Common issues that delay approval include:
- Incomplete income documentation
- Undisclosed debts
- Inaccurate construction budgets
- Missing insurance or builder verification
Best practices to close faster
To help close your one-time close construction loan on schedule, follow these steps:
- Start early: Begin gathering your builder’s documents as soon as you sign the construction contract.
- Use an experienced builder: Builders familiar with the one-time close process can help avoid back-and-forth.
- Submit a complete file: Include tax returns, pay stubs, bank statements, and any additional assets upfront.
- Stay responsive: Answer your loan officer’s questions and document requests within 24 hours when possible.
- Ask about lender experience: Work with a lender that specializes in construction-to-permanent financing, like GO Mortgage.
What to expect after closing
Once your loan closes, construction begins. The lender issues funds in scheduled draws, based on progress milestones. Before each draw is released:
- The builder submits a draw request.
- A third-party inspector verifies completion of that construction stage.
- The lender releases funds to the builder or subcontractors.
You will typically make interest-only payments during construction based on the amount drawn to date. After final inspection and issuance of the certificate of occupancy, the loan converts into a fully amortized mortgage.
Common delays and how to prevent them
Some delays are unavoidable, but most can be avoided. Here are issues that can slow down closing and how to reduce the risk:
| Delay Cause | Prevention Tip |
| Builder paperwork incomplete | Work with builders experienced in one-time close loans |
| Permits not submitted | Submit permit applications early and track approval dates |
| Inaccurate or outdated documents | Provide all financial documents within 30 days |
| Construction budget not itemized | Use a line-item budget format required by your lender |
| Slow appraisal turnaround | Order the appraisal early and confirm appraiser availability |
| Missed responses to loan conditions | Check email daily and respond within 24 hours |
The more proactive you are, the faster your loan will close.
FHA and VA one-time close closing timelines
If you’re applying for an FHA or VA one-time close construction loan, add 1 to 2 weeks to your expected timeline. Here’s why:
- Additional reviews are required by the U.S. Department of Housing and Urban Development (HUD) or the U.S. Department of Veterans Affairs (VA).
- VA appraisals may require more documentation and inspections.
- Builders must meet program-specific approval standards.
Although these loans may take longer to close, they offer critical benefits:
- FHA: Low down payment (as little as 3.5%), flexible credit standards
- VA: 0% down payment for eligible veterans, no private mortgage insurance (PMI)
If you’re eligible, these programs can help reduce upfront costs and long-term mortgage expenses.
FAQ: How long does it take to close a one-time close construction loan?
Q: How long does it take to close a one-time close construction loan?
A: Most loans close in 45 to 60 days, but more complex files, especially FHA or VA loans, may take up to 75 days.
Q: Why does a one-time close loan take longer than a regular mortgage?
A: There are more moving parts, including builder approval, construction appraisal, and draw schedule setup.
Q: What is the best way to speed up my loan closing?
A: Submit complete documents early, respond quickly to requests, and choose a builder and lender experienced with one-time close loans.
Q: Do I need my building permits before I close?
A: Yes. Most lenders require permit approvals or evidence of pending permits before closing the loan.
Q: Does the interest rate get locked before or after closing?
A: Your interest rate is typically locked before closing and remains fixed when the loan converts to permanent financing.
Ready to build your home? Start with GO Mortgage
Closing a one-time close construction loan doesn’t have to be confusing. When you understand the steps involved and prepare your documentation in advance, you can keep your timeline on track and start building with confidence.
GO Mortgage specializes in one-time close loans and supports borrowers through every step of the process. If you’re ready to build your dream home with a streamlined, single-close mortgage, start your application today.