Can I use a one-time-close or two-close construction loan in Florida?
Short Answer
Yes. I can originate one-time-close and two-close construction loans through PMF, Inc. when the borrower, the property, and the written program fit. I can't promise the permanent loan after construction. This page does not describe other construction programs. Any loan approval is conditional until all underwriting conditions are met.
Can I use a one-time-close or two-close construction loan in Florida?
Yes. I can originate one-time-close and two-close construction loans through PMF, Inc. when the borrower, the property, and the written program fit. I can't promise the permanent loan after construction. Availability, requirements, and terms vary by lender and property, and I can't promise an approval.
What a one-time-close construction loan is
A one-time-close construction loan is structured so that construction financing and the later permanent mortgage are set up in a single closing. After the home is completed and the written conditions are met, the loan is meant to convert to a permanent mortgage. That conversion is not automatic, and the permanent loan still has to be approved. Inspections, draws, insurance, and any remaining underwriting conditions still have to be satisfied under the written program.
This structure can reduce the number of closings, but it does not remove construction risk. Cost overruns, delays, a change in the plans, or a problem with the contractor or the property can still affect whether the file can convert as planned.
What a two-close construction loan is
A two-close construction loan uses one closing for the construction period and a second closing for the permanent mortgage. Each closing has its own documents, costs, and underwriting. Qualifying for the construction loan does not mean the permanent loan is approved. The permanent mortgage still has to fit the borrower, the completed property, and the written program then in effect.
Some borrowers use a two-close structure because it keeps the construction and permanent decisions separate. That can also mean two sets of closing costs and a second underwriting review when the home is finished. I compare the two structures against the file in front of us. I don't treat either one as automatically better.
What still has to be true on either path
Construction loans are still loans. Credit, income or asset documentation, the lot or existing improvements, the budget, and reserves can all be part of the review. Draw schedules, inspection requirements, and contingency funds follow the written program. I don't promise a draw date, a completion date, or a specific inspection result from this page.
In Florida, construction work generally has to be performed by a licensed contractor. Florida law addresses unlicensed contracting, including sections 489.113 and 489.128, Florida Statutes. We confirm the contractor's license on the official state lookup at myfloridalicense.com rather than relying on marketing materials.
Some builders encourage or prefer that you use an affiliated lender. You are not required to use a particular lender as a condition of the purchase unless the written contract says so. I still compare the construction-loan options that actually fit your file. For a completed new home, rather than a construction-to-permanent path, see advantages of buying a newly built home. Broader loan-path context is on financing options.
Questions to ask
- Is a one-time-close or a two-close structure the better fit for this lot, this builder, and this budget?
- What conditions have to be met before a one-time-close loan can convert to a permanent mortgage?
- If the path is two-close, what has to be true at the second closing for the permanent loan?
- How will draws, inspections, contingency funds, and construction-period insurance be handled under the written program?
- Is the contractor licensed in Florida, and can that license be verified on the official state lookup?
What to do next
Read advantages of buying a newly built home if the house is already complete or under a builder purchase, then book a consult if you want to talk through a one-time-close or two-close construction path on a specific lot or plan. I can't promise that either structure will be available or approved on your file.
Jonathan Loescher, Realtor, Florida real estate license SL3546365, Realty of America. Jonathan Loescher, Mortgage Loan Originator, NMLS 2621894. Mortgage loans are originated through PMF, Inc., NMLS 1980, a Florida licensed Mortgage Broker. Real estate and mortgage services are provided by separate companies, and you don't have to use both. Verify licensing at www.nmlsconsumeraccess.org. Equal Housing Opportunity. This page is consumer education, not a commitment to lend. Any loan approval is conditional until all underwriting conditions are met.