Conventional Construction
Up to 95% financing, fixed and adjustable terms, and options for primary homes, second homes and investment properties.
CONVENTIONAL · FHA · VA
One-Time Close Construction-to-Perm Loans in Florida
ONE LOAN. ONE CLOSING.
ONE PATH FROM YOUR HOMESITE TO MOVE-IN DAY.
Finance the build and your permanent mortgage together with Conventional, FHA or VA construction-to-permanent financing.
1st Florida Lending Corp. · Orlando-based Direct Mortgage LenderONE LOAN. ONE CLOSING.
- One-Time CloseOne approval, one closing
- From 5% DownConventional construction
- From 3.5% DownFHA construction
- VA $0 DownEligible veterans, up to $4M
BUILD WITH CONFIDENCE
From Vacant Land to Your Dream Home
A one-time close construction loan, also called a construction-to-permanent or single-close loan, pays for building your home and then becomes your long-term mortgage. You apply once, are approved once and sign at one closing before the first shovel goes in the ground.
1st Florida Lending offers one-time close construction financing through three programs: Conventional, FHA and VA. Our construction team helps you plan the land, builder, draw schedule and permanent mortgage together, so each decision fits the next.
FHA Construction
Up to 96.5% financing for a primary residence, with conforming and high-balance loan amounts.
VA Construction
Up to 100% financing for eligible veterans and service members, loan amounts up to $4 million and no monthly payments during the build.
Jump to the details: Conventional · FHA · VA · side-by-side comparison
HOW IT WORKS
Two Phases. One Closing.
Phase 1: The construction phase
Your construction funds are not paid out all at once. They are released to your builder in stages, called draws, as each phase of work is completed and inspected. On Conventional construction loans you pay interest only on the money drawn so far. On VA construction loans there are no monthly payments while the home is built.
Phase 2: Your permanent mortgage
When the home is finished and passes its final inspection, the loan converts to your permanent mortgage. There is no second closing and no new income review, so a second set of closing costs is avoided.
ONE CLOSING OR TWO
One-Time Close vs. Two-Time Close
| Applications and approvals | One-time close: one. Two-time close: two, one for the construction loan and one for the mortgage. |
|---|---|
| Closings and closing costs | One-time close: one closing and one set of costs. Two-time close: two closings and two sets of costs. |
| Requalifying | One-time close: no new income review when the home is finished. Two-time close: income, credit and debts are reviewed again before the second loan. |
| Interest rate | One-time close: your rate and lock options are set out in writing before closing. Two-time close: the mortgage rate depends on the market when the home is finished. |
| Payments during the build | One-time close: interest only on funds drawn (Conventional) or no monthly payments (VA). Two-time close: usually interest only on funds drawn. |
| Best fit | One-time close: most buyers who want one plan from start to finish. Two-time close: borrowers who plan to sell or expect to qualify for different terms after the build. |
PROGRAM 1
Conventional One-Time Close Construction Loans
Conventional construction-to-permanent financing suits buyers who want design flexibility and a choice of permanent mortgage terms. It is the only one of our three construction programs that can be used for second homes and investment properties, in addition to primary homes.
- Up to 95% financing: As little as 5% down for eligible borrowers.
- Permanent terms: 15- and 30-year fixed, or 7- and 10-year adjustable-rate (ARM).
- Loan amounts: Conforming and high-balance options.
- Occupancy: Primary homes, second homes and investment properties, subject to occupancy-specific guidelines.
- Build time: Up to 11 months of construction plus a one-month modification period.
- Payments during the build: Interest only on the funds drawn so far.
- Manufactured homes: Eligible under certain programs.
PROGRAM 2
FHA One-Time Close Construction Loans
FHA construction-to-permanent financing helps eligible buyers build a primary residence with a smaller down payment than many conventional options. FHA loans include mortgage insurance and have their own borrower, builder, property and appraisal requirements.
- Up to 96.5% financing: As little as 3.5% down for eligible borrowers.
- Permanent terms: 20-, 25- and 30-year terms.
- Loan amounts: FHA conforming and high-balance options.
- Occupancy: Primary residence only.
- Based on total acquisition cost: The builder's price or subcontractor bids and materials, certain borrower-paid options and, depending on the transaction, the land cost or land value.
- Manufactured homes: Eligible under certain programs.
Your loan officer confirms the construction-period payment schedule and build timeline for the FHA program you select.
PROGRAM 3
VA One-Time Close Construction Loans
For eligible veterans, service members and other qualified VA borrowers, a VA construction-to-permanent loan is a way to build a primary residence with no down payment and no monthly payments while the home is being built.
- Up to 100% financing: $0 down with sufficient VA entitlement.
- Loan amounts up to $4 million: Subject to entitlement and program guidelines.
- Permanent term: 30-year fixed rate.
- No monthly payments during construction: Your first mortgage payment comes after the home is finished.
- Build time: Up to 11 months of construction plus a one-month modification period.
- Occupancy: Primary residence only.
VA entitlement, residual income, builder approval, appraisal and occupancy requirements apply. $0 down does not always mean $0 at closing; closing costs and the VA funding fee, unless you are exempt, still need to be covered or financed where allowed.
SIDE BY SIDE
Conventional vs. FHA vs. VA Construction Loans
| Feature | Conventional | FHA | VA |
|---|---|---|---|
| Maximum financing | Up to 95% | Up to 96.5% | Up to 100% |
| Minimum down payment | 5% | 3.5% | $0 with full entitlement |
| Occupancy | Primary, second home or investment | Primary residence | Primary residence |
| Permanent terms | 15/30-year fixed; 7/10-year ARM | 20/25/30-year | 30-year fixed |
| Loan amounts | Conforming and high-balance | Conforming and high-balance | Up to $4 million |
| Payments during the build | Interest only on funds drawn | Confirmed for your program | No monthly payments |
| Build time | 11 months + 1-month modification | Confirmed for your program | 11 months + 1-month modification |
| Manufactured homes | Eligible on certain programs | Eligible on certain programs | Ask your loan officer |
| Key requirement | Occupancy and property guidelines | FHA mortgage insurance | VA eligibility and entitlement |
Compare our three one-time close construction programs
Maximum financing
- Conventional
- Up to 95%
- FHA
- Up to 96.5%
- VA
- Up to 100%
Minimum down payment
- Conventional
- 5%
- FHA
- 3.5%
- VA
- $0 with full entitlement
Occupancy
- Conventional
- Primary, second home or investment
- FHA
- Primary residence
- VA
- Primary residence
Permanent terms
- Conventional
- 15/30-year fixed; 7/10-year ARM
- FHA
- 20/25/30-year
- VA
- 30-year fixed
Loan amounts
- Conventional
- Conforming and high-balance
- FHA
- Conforming and high-balance
- VA
- Up to $4 million
Payments during the build
- Conventional
- Interest only on funds drawn
- FHA
- Confirmed for your program
- VA
- No monthly payments
Build time
- Conventional
- 11 months + 1-month modification
- FHA
- Confirmed for your program
- VA
- 11 months + 1-month modification
Manufactured homes
- Conventional
- Eligible on certain programs
- FHA
- Eligible on certain programs
- VA
- Ask your loan officer
Key requirement
- Conventional
- Occupancy and property guidelines
- FHA
- FHA mortgage insurance
- VA
- VA eligibility and entitlement
ALREADY OWN YOUR LAND?
Put Your Land Equity to Work
If you already own a suitable homesite, equity in that land may count toward the money you need to put into the project. Depending on the program, it can reduce or even eliminate the extra cash needed for your down payment.
How your land is valued depends on when you bought it, what you paid, its appraised value, any loan still on it and the loan type you choose. Your loan officer reviews your deed, title, any land loan balance and your construction budget before estimating usable equity.
Don't own land yet? Depending on the program, the land purchase can be financed together with the construction.
Review My Land EquityPLAN THE COSTS
What Is Included in the Construction Budget?
Your loan is sized around the total cost of the project, often called the total acquisition cost. Depending on the program and transaction, it can include:
- The builder's price: Or subcontractor bids and materials.
- Borrower-paid options: Certain upgrades and construction options you pay for.
- The land: Its cost or value, depending on the transaction. This matters most on FHA loans.
- Site preparation: Clearing, fill, driveway, well or septic.
- Permits and utility connections: Including county permit and impact fees.
- Contingency reserves: A cushion for change orders and surprises.
Some items can be financed while others are paid in cash. Ask your builder exactly what their contract includes, and plan for closing costs and interest during the build.
LOCAL KNOWLEDGE
What Florida Builders and Buyers Should Know Before Breaking Ground
Building in Florida comes with steps that national guides rarely mention. Plan for these early:
- A licensed contractor: Florida licenses building and general contractors through the Department of Business and Professional Regulation. Your builder's license is checked during approval.
- Notice of Commencement: Under Florida's construction lien law, this notice is recorded with the county before work starts. Lien releases from subcontractors and suppliers protect you as draws are paid.
- Hurricane-ready building code: The Florida Building Code sets wind-resistance standards. Impact windows, roof straps and other upgrades should be in the budget from day one.
- Flood zones and elevation: In a flood zone, the home's elevation affects both what you can build and your flood insurance premium. An elevation certificate may be needed.
- Builder's risk insurance: The home needs coverage while it is under construction, then a homeowners policy, including wind, once it is finished.
- Permits, impact fees and HOA review: Counties charge permit and impact fees, and many communities require architectural approval of your plans. Include them in the budget and timeline.
QUALIFICATION
Construction Loan Requirements: What Underwriting Reviews
Important: Guidelines vary by program and can change without notice. Your loan officer will confirm current credit, down payment and reserve requirements for your scenario.
| Down payment | Conventional from 5%, FHA from 3.5% and VA $0 with full entitlement. Equity in land you already own may count toward it. |
|---|---|
| Income documents | Two years of tax returns and W-2s, recent pay stubs, verification of employment and bank statements. Self-employed borrowers typically provide personal and business tax returns. |
| Credit | Credit score and history requirements vary by program and are confirmed for your scenario. |
| Debt-to-income ratio | Your total qualifying monthly debts divided by your qualifying gross monthly income. Acceptable limits vary by program and underwriting findings. |
| Assets | Funds for the down payment, closing costs and any required reserves. |
| Builder | A licensed, insured builder approved by the lender, with a signed construction contract. |
| Plans and budget | Building plans, specifications and a line-item cost breakdown. |
| Appraisal | Based on the value of the finished home, using your plans and specifications. |
| Occupancy | Primary, second home or investment (Conventional). Primary residence (FHA and VA). |
| Property type | Site-built homes. Manufactured homes are eligible under certain Conventional and FHA programs. |
WHO IT CAN HELP
Built for How Floridians Build
Lot Owners
Already own your land? Its equity may count toward your down payment.
Families Building a Primary Home
Plan the build and the permanent mortgage together and close once.
First-Time Builders
FHA construction financing starts at 3.5% down for a primary residence.
Veterans and Service Members
Build with $0 down and no monthly payments during construction.
Second-Home Buyers
Build your Florida getaway with a Conventional construction loan.
Investors
Conventional construction options include investment properties.
A BALANCED VIEW
Pros and Cons of One-Time Close Construction Loans
Pros
- One closing: One approval and one set of closing costs instead of two.
- No new income review at completion: The loan converts without a second application.
- Lower payments during the build: Interest only on funds drawn, or no monthly payments on VA.
- Low down payment options: 5% Conventional, 3.5% FHA and $0 VA for eligible borrowers.
- Built to your plans: Finance the home you design instead of what is for sale.
Cons and considerations
- More paperwork up front: Plans, budget, builder documents and contract are reviewed before closing.
- Builder approval: Not every builder is approved; a well-established, licensed builder makes the process smoother.
- Overruns are on you: Costs above the approved budget may require more funds, use of the contingency or an approved change order.
- Timing: Weather, inspections and materials can stretch a build. Ask how extensions and the modification period work.
WHEN THE HOME IS FINISHED
Construction Completion and Your Permanent Mortgage
At the end of construction, completion is verified through a final inspection, appraisal update or other required paperwork. Once completion conditions, insurance and occupancy requirements are met, your loan converts to permanent financing with no second closing and no new income review.
Before you close, ask for the written terms on your rate lock, your expected final payment, the construction time limit, the one-month modification period and anything that could delay conversion.
BE READY
Your Construction Loan Document Checklist
- Application and credit authorization: Your basic information to start.
- Income documents: Two years of tax returns and W-2s, recent pay stubs and employment verification.
- Bank and asset statements: Funds for the down payment, closing costs and reserves.
- Lot information: The purchase contract, or the deed and any loan payoff if you already own it.
- Builder package: License, insurance and references for lender approval.
- Construction contract: Signed by you and your builder.
- Plans and specifications: Including the materials list used for the appraisal.
- Cost breakdown and draw schedule: A line-item budget and the planned draw stages.
- VA Certificate of Eligibility: For VA construction loans.
Your officer will provide a checklist for your scenario. Do not send identification or financial documents by ordinary email; use the secure upload link your officer provides.
YOUR NEXT STEPS
From Application to Move-In, Step by Step
- 1.
Talk with a construction loan officer
Share your goals, land status, budget and how you plan to use the home.
- 2.
Choose Conventional, FHA or VA
We review your eligibility for each program and recommend the best fit.
- 3.
Send your documents
Provide income, asset and credit information for an initial financing review.
- 4.
Finalize your builder and plans
Select an approved builder and complete plans, specifications and the construction contract.
- 5.
Appraisal and approval
The appraisal, project review, title and underwriting are completed. One approval covers the build and the permanent loan.
- 6.
One closing
Sign once. Closing costs are paid one time, and the construction funds are ready.
- 7.
Build and draw
Funds go to your builder as milestones pass inspection.
- 8.
Move in
After final completion, insurance and occupancy requirements are met, the loan converts to your permanent mortgage.
Build with an Orlando-based direct mortgage lender
1st Florida Lending Corp. has helped Floridians finance new homes since 2007. Our loan officers know Florida permitting, building code and insurance, and we guide you through Conventional, FHA and VA construction financing from the first plan review to move-in day.
- One-time close construction-to-permanent financing
- Conventional, FHA and VA construction programs
- Land you own may count toward your down payment
- VA $0 down with no payments during the build
- In-house processing from application to closing
- Licensed Florida direct mortgage lender
Build your dream home with confidence
Tell us about your lot, plans and builder. We'll help you compare Conventional, FHA and VA construction-to-permanent financing and find the program that fits.
One-Time Close Construction Loan FAQs
Disclaimer
This page is educational and does not constitute a loan application, pre-approval, rate quote or commitment to lend. The examples are illustrative only. All loans are subject to credit approval, builder and property approval and program guidelines, which vary by program and may change without notice. VA $0 down requires sufficient entitlement and program eligibility. FHA loans require mortgage insurance. 1st Florida Lending Corp. is a licensed mortgage lender. Equal Housing Lender.