Custom Construction Advisory • Austin & Texas Hill Country

One-Time Close Construction Loans in Texas

Lock Your Rate Upfront. Credit 100% Land Equity. Single Set of Fees.

Building a custom home should be an exciting journey, not an exercise in double closing costs and interest rate vulnerability. Adam Styer structures One-Time Close (OTC) construction-to-permanent mortgages across Austin, Dripping Springs, Lake Travis, and Central Texas, locking your permanent 30-year fixed rate before groundbreaking.

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By Adam Styer, Senior Loan Officer • NMLS #513013 • Company NMLS #2072896

Closing Model
One-Time Close
Single closing eliminates double title & lender fees
Lot Equity
100% Equity Credit
Owned land value counts toward your down payment
Construction Rate
Locked at Close
Zero interest rate risk during the build period
Auto-Conversion
Perm. 30-Yr Fixed
Converts seamlessly upon final Certificate of Occupancy
What should I know about this option?

How Does a Texas One-Time Close Construction Loan Work?

A One-Time Close (OTC) construction loan combines the financing for your lot purchase or payoff, your custom construction budget, and your permanent 30-year mortgage into one single promissory note and one set of closing documents. You pay closing costs once, sign once, and lock your permanent mortgage interest rate before a shovel hits the ground.

During the 9 to 12-month build phase, you make interest-only payments based solely on the funds disbursed to your builder across 4 to 6 milestone inspection stages. Upon completion and issuance of the local Certificate of Occupancy, the loan converts automatically into a traditional 30-year fixed mortgage without requiring an updated appraisal, requalification, or additional closing fees.

Common Situations

Who This Program Is Built For

Clear borrower profiles where this financing structure provides substantial advantages.

Texas Land & Lot Owners

If you already own your lot in Austin, Dripping Springs, or Spicewood, your accumulated land equity counts 100% toward the required down payment—often requiring $0 cash.

Tear-Down & Rebuild Projects

Borrowers purchasing aging structures in central Austin (Allandale, Crestview, Travis Heights) to demolish and replace with custom luxury homes.

Hill Country Acreage Builders

Financing custom homes on 1 to 10+ acre tracts in Hays, Blanco, Burnet, and Williamson counties with licensed general contractors.

Rate-Conscious Homebuilders

Families who want complete certainty against interest rate spikes during the 9 to 12 months it takes to construct a home.

Options & Milestones

Simple Options & 3-Step Process

Clear paths and milestones supported by independent wholesale processing.

Conventional OTC Construction

Financing up to the $832,750 conforming baseline limit with as little as 5% to 10% equity or down payment.

Best for: Conforming build budgets under $832k

Jumbo Custom Construction

High-balance construction financing for luxury custom builds up to $2.5M–$3M+ with flexible stage draw schedules.

Best for: High-value custom residences

VA One-Time Close Construction

0% down construction financing for eligible active-duty military and veterans building custom primary homes.

Best for: Zero down custom builds for veterans
01

Builder & Budget Review

We review your builder's licensing, insurance, construction contract, floor plans, and draw schedule for underwriting alignment.

02

Single Upfront Closing

Your loan closes, permanent interest rate is locked, and construction escrow draw funds are established.

03

Staged Draws & Conversion

Disbursements are inspected and released in 4–6 stages. Upon Certificate of Occupancy, the loan auto-converts to your permanent 30-year fixed mortgage.

Illustrative Scenario

In Action: A Clear Scenario

A transparent look at real-world numbers and successful funding.

Illustrative Case • Custom Hill Country Build Austin (Spicewood / Lake Travis), Texas

Spicewood Custom Home — $1.1M Project with Lot Equity Credit

The Situation: An Austin family purchased a 2-acre homesite in Spicewood three years ago for $220,000, paying down the land note to $90,000. Current market appraisal on the land was $310,000 ($220,000 equity). They signed an $800,000 build contract with a licensed Hill Country custom builder.

The Conventional Dilemma: A commercial bank proposed a 2-time close construction loan: an adjustable 8.5% interest-only construction note with $12,000 in closing costs, followed by a second refinance into a permanent mortgage with another $10,000 in fees and no guarantee on interest rates.

The Wholesale OTC Solution: Adam structured a One-Time Close construction loan. Total project value was $1,110,000 ($310k lot + $800k build). The $220,000 lot equity covered the entire 20% down payment requirement ($0 cash out of pocket). Their permanent 30-year fixed rate was locked upfront. The build finished in 10 months, auto-converted at completion, and saved them over $15,000 in duplicate closing costs.

Disclosure: Illustrative scenario based on composite borrower profile. Actual interest rates, loan limits, and qualification guidelines depend on credit profile, property appraisal, and lender criteria.

Supporting Research & Worksheets

Explore the Details

In-depth underwriting guidelines, loan matrices, and interactive tools in our specialist resources.

Austin Construction Loans Overview Explore Programs →

Compare One-Time Close programs with jumbo custom builder options.

Construction Loan Scenario Review Worksheet Submit Scenario →

Submit your lot details and builder contract for a tailored budget analysis.

Buy Before You Sell Austin Strategy Explore Move Options →

How to finance your next build before putting your current house on the market.

Payment & Draw Calculator Calculate Payment →

Model monthly interest-only payments during the construction period and permanent payments after conversion.

One-Time Close vs. →

Texas Homestead and →

Clear Answers

Frequently Asked Questions

Straightforward answers to the questions Central Texas borrowers ask most.

What makes a One-Time Close loan different from a standard construction loan?

A standard construction loan requires two separate transactions: a short-term construction loan with its own closing fees, followed by a second permanent mortgage with a second set of closing fees. A One-Time Close combines both into one transaction, locking your permanent 30-year fixed rate upfront and saving thousands in duplicate closing costs.

Can I use land I already own as my down payment?

Yes! If you already own your lot, the appraised equity in your land counts directly toward the construction loan's down payment requirement. In many cases, this completely eliminates the need for any cash down payment.

Can I act as my own general contractor / builder (owner-builder)?

Most wholesale OTC programs require a licensed, third-party general contractor with documented experience, insurance, and warranty coverage to protect the property and borrower from construction default.

How are construction draw payments handled?

Draws are released in 4 to 6 stages as predefined milestones are completed (foundation, framing, rough-in mechanicals, drywall, trim/cabinets, final completion). An independent third-party inspector inspects the job site before each wire is released to your builder.

What happens if material costs increase during construction?

Construction contracts must include an owner contingency reserve (typically 5% to 10% of the build budget) built directly into the total loan amount to handle unforeseen change orders or material price fluctuations safely.

The Wholesale Advantage • Many wholesale lenders • Wholesale Pricing Without Corporate Bank Margins • Clear communication and the conditions list up front • Direct 1-on-1 Strategy from Adam Styer

Confidential Review

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