Life in Bell County · The Financing Guide

Financing Your Custom Home: How the One-Time Close Loan Works

September 5, 2026 Words by Lisa Copeland · Realtor · eXp Realty

Financing a custom home is one of the most misunderstood parts of the build, and it is the one that stalls more dream homes than design, land, or weather combined. The good news: there is a loan built exactly for this, the one-time close construction-to-permanent loan, and it makes the process dramatically simpler than the old two-loan way, one closing, one set of fees, and one rate locked for the whole ride.

This guide walks through what the loan is, how it works step by step, why it beats the two-close alternative, and how to get started. The trusted lending partner for Latitude 31 buyers is Central Texas Mortgage, and I will tell you exactly how to connect.

A timber-frame custom home rising on a Hill Country homesite at golden hour, plans on a sawhorse table

Construction financing is a different animal

Buying a finished house is one transaction: you get a mortgage, the seller gets their money, you get keys. Building a house is two events separated by months: the construction phase, when money goes out to the builder as work happens, and the completion phase, when you own a finished home and carry its permanent mortgage.

A construction loan funds the first phase. Instead of handing over a lump sum, the lender disburses money in draws, paid to the builder (with your sign-off) as stages of construction are completed and inspected. You pay interest only on the money actually drawn during construction. When the home is complete, the loan converts into the permanent mortgage you will carry, or, in the older two-close structure, you go get an entirely new mortgage. Here is where the two options split.

The one-time close loan, in plain terms

A one-time close loan, also called a construction-to-permanent loan, rolls both events into a single mortgage from day one. At the initial closing, you sign the full package: the construction terms AND the permanent mortgage terms. The lender funds the construction draws as the builder works, and when the home is finished, the loan automatically converts into the permanent mortgage at the terms you locked at the beginning.

One closing. One set of closing costs. One rate lock that protects you through the whole build. No second qualification, no second appraisal scramble, no surprise rate at the end. That is the one-time close advantage in a sentence, and it is why we point every Latitude 31 buyer at it first.

How it works, step by step

Here is the whole journey in the order it actually happens:

The one-time close path, start to finish

Get pre-approved with a lender experienced in construction loans, before you sign with a builder, so your budget is real from the start.
Choose your homesite at Ranch at Latitude 31 and settle the lot purchase, either as part of the loan package or with the lot equity feeding your down payment.
Finalize the plans, the builder's contract, and the line-item budget, Riata Builders gives you the detailed estimate that makes this possible.
Close once: sign the construction and permanent loan documents together, pay one set of closing costs, and lock your rate.
Build with draws: as Riata completes each stage, an inspection happens, you approve, and the lender pays the builder the scheduled draw.
Convert at completion: after the final inspection and certificate of occupancy, the loan converts to your permanent mortgage, no second closing, no re-qualifying, no new rate.
Move in and make your regular monthly payments, interest during the build becomes your regular mortgage payment, and that is the whole story.

Why it beats the two-close construction loan

The older model, a two-close loan, works like this: you close once on a construction-only loan, build, then close a second time to replace it with a permanent mortgage. Two closings means two sets of title, appraisal, and lender fees, a second underwriting pass, and, brutally, a second rate at whatever the market is doing the day you convert. If rates have climbed during your build, you eat it.

The peace of mind is the feature nobody prices: you know your monthly payment before the first shovel of dirt moves, and it is still your payment twelve months later when you get the keys.

The one-time close wins on all of these:

One closing instead of two: half the paperwork, half the fees.
One set of closing costs instead of two.
One rate lock that spans construction and the permanent loan, so rising rates do not touch you.
No second credit check or re-qualification at the end of the build.
Conversion happens automatically at completion, so the finish line is a walkthrough, not another loan office.

Who the one-time close is for

The one-time close fits most custom-home buyers: first-time builders who want certainty, move-up families selling a house while building, military families using VA construction-to-permanent options, and anyone putting appreciated land equity into the deal. Lenders also offer one-time close programs in conventional, FHA, and VA variants, so the right structure depends on your down payment, credit, and goals.

The honest caveat: a construction loan asks for more planning than a resale mortgage. You need a builder with a real contract and a real budget, a homesite that appraises, and a lender who knows how to draw and inspect construction properly. That is exactly the kind of team work we run daily at Latitude 31.

The trusted lending partner for Latitude 31 buyers

For buyers building at Ranch at Latitude 31, we work with one trusted lending team: Central Texas Mortgage. James Copeland and his team specialize in custom construction financing, including one-time close construction-to-permanent loans, and they know the Riata Builders construction process, the Latitude 31 lots, and the corridor's appraisal patterns inside and out.

That combination, a lender who has closed this exact loan on homes like yours, saves you weeks and thousands in avoided surprises. When you are ready to get serious, call James at (512) 789-7169 or visit CentralTXMortgage.com, and tell him Lisa sent you.

How to get started

Start with a thirty-minute conversation, no credit pull, no commitment. Tell James your lot number or your target budget, and he will tell you the realistic numbers and the right program within a day. Meanwhile, I will walk the homesites with you and make sure the lot and the budget line up.

That is how every build we do starts: the land, the numbers, and the plan all on the table together, before any ground breaks.

“Building the home you deserve should not be a mystery. Know the number, lock the rate, and watch the house rise. That is the one-time close, and that is the way we build.”

Lisa Copeland, Realtor and Founder, Lioness Real Estate Group

Start the conversation: contact the Lioness Home Group

Common Questions · 10 Straight Answers

Common Questions

These are the questions we hear every week, asked the way people actually ask them. Here is how we would answer each one if we were on the phone right now.

01 What is a one-time close construction-to-permanent loan?

It is a single mortgage that covers both building your home and the permanent loan afterward. You close once, the lender funds construction draws as the build progresses, and the loan converts to your regular mortgage automatically at completion, with your rate locked from the start.

02 How is a one-time close different from a two-close construction loan?

A two-close loan requires a second closing later to replace the construction loan with a permanent mortgage: two sets of fees, a second underwriting pass, and a second rate at whatever the market is doing. A one-time close happens once, with one set of fees, one rate lock, and automatic conversion.

03 Do I make payments during construction?

Yes, but they are interest-only payments based on the money actually drawn so far, not full mortgage payments. That keeps construction-period costs manageable, and the payment converts to your full principal and interest payment after the home is complete.

04 Can I lock my interest rate for the whole build?

Yes, that is the core advantage of the one-time close. Your rate is locked at the initial closing and carries through construction into the permanent loan, so rising rates do not affect you while the house is being built.

05 Does the VA or FHA offer one-time close construction loans?

Both have construction-to-permanent structures that can be used for one-time close custom builds, within their program limits. A construction-experienced lender, like our trusted partner Central Texas Mortgage, can tell you which program fits your situation.

06 How do construction draws work?

As Riata Builders completes stages of construction, the lender inspects the work, you approve the draw, and the lender pays the builder from your loan funds. The schedule is set out in your loan documents so everyone knows the milestones in advance.

07 What do I need to qualify?

The usual loan qualification, plus a signed builder contract with a detailed line-item budget and plans, and a homesite that appraises for the purchase or value you are using. The lender will walk you through the exact list at pre-approval.

08 Can my lot equity count as my down payment?

Often yes. If you own your homesite, or its value exceeds its purchase price, that equity can be applied toward your down payment and closing requirements. Your lender will structure the deal to use it correctly.

09 How long does the closing and funding process take?

Budget several weeks from application to closing for the appraisal, title, and underwriting, and pre-approval is faster still. The construction planning itself, plans, budget, and permits, runs the same period in parallel, which is why we start the financing conversation early.

10 How do I get started with Central Texas Mortgage?

Call James Copeland at (512) 789-7169 or visit CentralTXMortgage.com. Tell him Lisa Copeland sent you and that you are looking at Ranch at Latitude 31, and he will walk you through the one-time close numbers for your lot and plan.

Build Your Legacy in Bell County

Come see why families are choosing to build their legacy here.

Every place in this guide is minutes from Ranch at Latitude 31: 626 acres of Hill Country, homesites up to 3.11 acres, trails and views, with custom homes by Riata Builders starting in the high $700Ks. Walk a homesite at dusk, and you will feel exactly why this county is home to so many families.

Explore the Community See the Custom Homes Start Your Journey

Lisa Copeland · Realtor, Salesperson #733507 TX · eXp Realty · (512) 944-5472

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