Build Your Dream Home with One-Time Close Construction Financing
Construction-to-permanent loans offer single-close convenience with competitive rates for qualified borrowers for building custom homes in Raleigh, NC. Jason Iacovelli (NMLS #3370) specializes in construction financing throughout Raleigh, Cary, and Apex. Unlike traditional conventional loans, construction loans cover both land purchase and building costs with interest-only payments during construction.
Funds are disbursed in draws as construction progresses. You pay interest-only during building, then convert to a permanent mortgage.
Yes, most lenders allow you to choose your builder, but they must be licensed, insured, and meet lender qualifications.
Typically 10-20% down is required, depending on your credit score, builder experience, and project details.
A single-close loan that covers construction and automatically converts to a permanent mortgage, saving closing costs and time.
45-60 days typically, as lenders review plans, builder credentials, cost estimates, and project feasibility.
Build your custom home with a single-close construction loan that converts to a permanent mortgage once construction is complete.
680+ minimum, 720+ best rates
10-20% typically
Licensed & insured required
Detailed blueprints needed
Know your budget before planning
Select contractor and finalize designs
Plans, permits, and cost estimates
Funds disbursed as work progresses
Automatic conversion at completion
A single-close loan that covers both construction and converts to a permanent mortgage once building is complete, saving time and money.
Typically 10-20% down payment is required for construction loans, depending on credit and builder qualifications.
Some lenders allow owner-builders, but most require a licensed general contractor with proven track record and insurance.
Funds are released in draws as construction progresses, based on inspections verifying completed work at each stage.
Minimum 680 credit score typically required, with 720+ getting the best rates for construction financing.
Most construction loans allow 6-12 months to complete building. Extensions possible with lender approval if needed.
You typically pay interest-only on funds disbursed during construction, then convert to principal and interest payments.
Yes! Construction loans can finance land purchase and building costs together, or refinance land you already own.
Detailed building plans, contractor agreements, cost breakdowns, permits, and builder credentials are required for approval.
Construction loan rates are typically 0.5-1% higher than purchase loans due to additional risk, but become competitive once converted.