Build your home, finance it once, lock the rate.
A construction loan funds the land purchase and the cost to build a new home, then converts to a permanent mortgage when construction completes. PRMG offers one-time-close construction-to-permanent loans across FHA, VA, Conventional, and Jumbo programs.
A construction loan funds the land plus the cost to build. With a one-time-close construction-to-permanent loan, you close once at the beginning, lock the permanent mortgage rate, draw funds as construction progresses, and the loan automatically converts to a regular 30-year mortgage when the home is finished. No second closing, no second appraisal, no requalification.
3.5% down, low credit minimums, fixed rate locked at closing. Limited to FHA county loan limits.
0% down for eligible veterans. No funding fee escalation during construction.
100% financing in eligible rural areas. Single close.
5-20% down, jumbo amounts available, primary or second home.
Loan amounts above conforming limits. 10-20% down typical.
Combines home purchase plus renovation cost into one loan.
Work with your selected licensed builder. Builder must be approved.
FHA: 580+. VA: 600+. Conventional: 680+. Jumbo: 700+.
FHA 3.5%, VA 0%, USDA 0%, Conventional 5-20%, Jumbo 10-20%.
Licensed, insured, approved by lender. Owner-builder allowed on some programs.
Detailed plans, specs, and itemized construction budget required at application.
Already owned or being purchased simultaneously. Land equity counts toward down payment.
6-12 months of permanent loan PITIA typical.
Common questions on construction loans, answered by Ken Clark Jr., Certified Mortgage Advisor.
A one-time-close (OTC) construction loan combines the construction financing and the permanent mortgage into a single loan with one closing. You lock the permanent rate at the start, draw funds as construction progresses, and the loan converts to a 30-year mortgage when the home is finished, without needing to requalify or close again.
You close once on the construction-to-permanent loan. The lender funds the land purchase if needed, then disburses construction funds in stages (called draws) as the builder completes work. During construction, you pay interest only on the funds drawn. When the home is finished, the loan automatically converts to a 30-year mortgage with principal and interest payments.
Down payment varies by program. FHA construction requires 3.5% of total project cost (land + construction). VA allows 0% down. USDA allows 0% down in eligible areas. Conventional requires 5-20% down. Jumbo construction typically requires 10-20% down.
Yes. The VA One-Time-Close Construction-to-Permanent loan allows eligible veterans to build a home with zero down. The funding fee is paid only once, not at construction close and again at conversion. Builder approval is required.
FHA construction requires 580+. VA typically requires 600+. Conventional construction requires 680+. Jumbo construction requires 700+. Builder approval and contingency reserves are also reviewed.
Owner-builder construction loans exist but are limited and require strong construction experience documentation, larger reserves, and tighter draw schedules. Most one-time-close programs require a licensed general contractor.
Construction periods typically run 9 to 12 months for a single-family home, with options to extend. Permanent loan rates can be locked at closing for up to 12 months in most programs.