Build the Home You've Always Imagined.
From lot purchase through final walkthrough, our construction-to-permanent loans finance every stage of your custom home build — with one loan, one close, one dedicated team.
5–20%
Min. Down Payment
680
Min. Credit Score
Interest-Only Draws
Build Phase
Auto-Converts to Perm
Conversion
Overview
One Loan from Groundbreaking to Move-In
A construction-to-permanent loan (also called a one-time close or OTC loan) covers both the construction phase and the permanent mortgage in a single transaction. You go through one application, one underwriting, one set of closing costs — and the loan automatically converts to a standard mortgage once your builder receives a certificate of occupancy.
During construction, you draw funds from the loan in scheduled installments as work is completed. You pay interest only on the outstanding balance — not the full loan amount — keeping your carrying costs manageable while your home is being built.
Who This Is For
Key Features
What Makes This Program Work
Land + Build in One Loan
Finance the purchase of the lot and the cost of construction together — no need for a separate land loan first.
Draw Schedule
Funds are disbursed in stages as construction milestones are completed and inspected. You pay interest only on what has been drawn.
One-Time Close
A single closing covers both the construction loan and the permanent mortgage — saving you thousands in duplicate closing costs.
Rate Lock Available
Lock your permanent mortgage rate at application — protecting you from rate increases during the construction period.
12–18 Month Build Period
Standard construction periods are 12 months with an extension option — providing a realistic timeline for most custom builds.
Auto-Converts to Perm
When your builder provides a certificate of occupancy, your loan automatically converts to a standard 30-year (or other term) fixed mortgage — no new closing.
Have questions about this loan?
Talk to an Expert — Free Consultation
Get a personalized rate quote with no impact to your credit score.
Interactive Tool
Construction Loan Calculator
Estimate your total project cost, monthly interest payments during construction, and permanent mortgage payment — all in one place. Adjust land value, build budget, draw schedule, and rates to model your scenario.
Construction Loan Calculator
Land · Build · Permanent Financing
Project Costs
Purchase price or land value
Hard + soft build costs
Total Cost
$750,000
Down Payment
$150,000
Loan Amount
$600,000
Construction Phase
Construction Rate
Avg. Interest
during build
$1,828/mo
Permanent Mortgage
Permanent Rate
Permanent P&I
$3,597
30-yr fixed · 5.999%
Loan Amount
$600,000
Total Payments
$1,294,890
Taxes & Insurance
Property Tax
~$688/mo
Home Insurance
monthly premium
LTV
80.0%
Cash to Close
Closing costs are estimated. Contingency is held in a lender-controlled draw account and financed into your construction loan — not paid separately at closing.
Estimates only. Actual closing costs vary. Contact Lumen Mortgage for a formal construction loan analysis. NMLS #1498678.
The Process
How It Works
Pre-Qualification & Plans Review
Share your lot details, builder, and construction plans. We'll confirm your loan amount, rate, and initial draw schedule structure.
Application & Appraisal
We order a 'subject to completion' appraisal based on your plans. This determines the as-built value and sets your permanent loan amount.
Construction Closing
Close on the lot and begin the construction loan. Your builder receives the first draw and breaks ground.
Draw Inspections
As construction progresses, inspections confirm completion of each phase before the next draw is released to your builder.
Certificate of Occupancy
When your local jurisdiction issues a CO, we schedule the final draw and convert the loan to your permanent mortgage.
Requirements
General Qualifications
Ready to See If You Qualify?
Every borrower's situation is unique. Give us 15 minutes and we'll review your financial picture, identify every program you qualify for, and walk you through your options — at no cost and with no obligation.
Licensed in Oregon & California · NMLS #1498678
FAQ
Common Questions
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Ready to Get Started?
Our loan officers will review your scenario, walk you through your options, and guide you from application to close — with full transparency at every step.