Construction Loan in Oklahoma.
Locally Owned | Local Experience | Local Community Lender
35+ Years in Business
What is a One-Time Close Construction Loan?
A **One-Time Close (OTC) construction-to-permanent loan** secures both your interim construction financing and your long-term 15- or 30-year permanent mortgage simultaneously. Instead of managing two separate loan processes, you qualify once, sign papers once, and enjoy a single, unified closing.
How can a One-Time Close Loan Benefit You?
Traditional building loans require two separate transactions. By combining them into one seamless program, you eliminate stress and save substantial cash upfront.
Interest Rate Protection
Lock in your long-term rate at closing. This protects you from rising market rates during construction, complete with a free float-down option if rates drop before your home is finished.
No Re-Qualification Anxiety
Once you close, your financing is set. You will not have to re-qualify or undergo additional credit checks when construction finishes, protecting you if credit scores or income change during the build.
Predictable, Milestone Payments
Pay only monthly interest on the funds actually drawn as the builder hits specific construction milestones, rather than on the full balance from day one.
No Money Down with Land Equity
If you already own the land where you plan to build, your equity can serve as your down payment, dramatically lowering or even eliminating your out-of-pocket costs at closing.
How Land Equity Works:
- If you own your land outright: You can apply your accumulated equity toward the required down payment.
- If you have an existing land loan: The proceeds from your new One-Time Close loan will automatically pay off the balance of your current land contract at closing.
- The Refinance Benefit: Because you owned the property prior to application, the loan converts to a refinance structure. Your final Loan-to-Value (LTV) ratio is calculated using the requested loan amount as a percentage of the land's total appraised value plus your planned structural improvements.
Frequently Asked Questions
Click below to explore timelines, disbursement schedules, and breakdown of project costs.
What is the construction term for a one-time construction loan?
The construction phase typically runs anywhere from 6 to 12 months. This timeline ensures your builder has plenty of time to complete the home while giving you the flexibility to sell your existing house.
During this phase, you pay **monthly interest-only payments** based strictly on the funds disbursed for completed work milestones.
What makes up the total Construction Loan Cost?
Your construction loan is budgeted across three primary financial buckets to ensure your project is fully funded and protected:
- Land Value: The cost to purchase your land at closing, or the funds allocated to pay off your existing land loan if you already hold a balance.
- Hard Costs: The direct, tangible expenses of building your physical home, including raw materials, site preparation, and contractor labor.
- Contingency Reserve: A vital safety net—typically consisting of an additional 10% of construction costs—built into the budget to safely cover unexpected upgrades, material price increases, or change orders.
How are draws disbursed to my builder during construction?
Funds are not handed over all at once. To ensure quality control, a total of five draw disbursements are scheduled on a work-completed basis as physical construction progresses.
Your builder submits separate draw requests directly to the construction lender as milestones are reached. An inspector verifies the progress, and funds are disbursed to cover the cost of that specific stage. This systematic release mirrors business equipment financing, keeping your budget safe and predictable.