If you're planning to build a custom home, you may be wondering how to finance it without the headache of applying for multiple loans. Traditional construction loans often require separate closings—one for the land, one for construction, and another for your permanent mortgage.

With CPF Mortgage’s One-Time Close Construction Loan, you can simplify everything into one loan, one approval, and one closing.

What Is a One-Time Close Construction Loan?

A one-time close construction loan (also called a construction-to-permanent loan) combines three major components of the homebuilding process:

• The land purchase (if needed)
• The construction loan
• The permanent mortgage

Rather than applying for separate loans and paying multiple sets of closing costs, you only close once—and the loan converts to a traditional mortgage automatically once construction is complete.

This loan is perfect for buyers who:

Are looking to simplify the financing process

Want to build on land they own or are purchasing

Prefer to use their own builder or general contractor

Want to lock in their mortgage rate early

How It Works with CPF Mortgage

We’ve designed the process to be easy to follow, with personalized support from day one.

1. Pre-Qualification and Planning

Start by getting pre-qualified with CPF Mortgage to determine your total budget. Then work with your chosen builder or contractor to design your dream home.

2. Contractor Selection and Review

Provide your contractor’s information to CPF Mortgage. We’ll verify licensing, insurance, experience, and project readiness. A $150 contractor review fee applies to ensure the builder is fully vetted.

3. Project Approval and Documentation

You’ll submit key documents including:

• Signed construction contract
• Detailed cost breakdown and budget
• Full set of construction plans
• Building permits
• Prepaid item documentation (if applicable)
• Home appraisal based on plans
• Construction draw schedule

A $300 project review fee is due at this stage. Once all documentation is reviewed and approved, we move to closing.

4. Closing Day

Once your title is recorded, CPF Mortgage disburses the initial draw to your contractor—and construction begins. You’ll also receive a full draw schedule and timeline.

5. The Construction Process

CPF Mortgage actively manages and oversees the process by:

• Tracking timelines
• Coordinating inspections
• Releasing construction funds
• Confirming title and insurance
• Collecting mechanic’s lien waivers

6. Final Completion and Loan Conversion

After construction is complete, your builder will submit a Certificate of Completion. CPF Mortgage conducts a final inspection and then modifies the loan to a standard mortgage. Your payment structure transitions from interest-only to principal and interest—without needing a second approval or closing.

Key Benefits of One-Time Close Construction Loans

✅ One Approval, One Closing – No need to apply for multiple loans
✅ Lock in Your Rate Upfront – Secure your mortgage rate before construction starts
✅ Choose Your Own Builder – Use your preferred contractor (with approval)
✅ Finance Land + Construction Together – Whether you already own land or not
✅ Lower Costs & Less Hassle – Save time and money compared to traditional construction loan setups

Trusted Resources

For more information on construction loans and how to prepare:

AnnualCreditReport.com – Check Your Credit Before You Apply

Consumer Financial Protection Bureau – Understanding Construction Loans

Start Building with CPF Mortgage

At CPF Mortgage, we believe building your home should be exciting—not overwhelming. That’s why we offer one-time close construction loans tailored to your goals, with expert guidance every step of the way.

Whether you're buying land or building on a lot you already own, our team is here to help you turn your blueprint into a reality. Contact us today.