One-Time vs. Two-Time Close Construction Loans: Myths, Benefits, and Best Strategies

Building your dream home shouldn't mean navigating confusing loan options or falling for outdated myths. The truth? Today's construction loans—both one-time close and two-time close—are far more accessible than most buyers realize.

Forget the misconceptions about double mortgage payments, massive down payments, or having to move twice. Modern construction financing offers solutions like interest reserve accounts, cross-collateralization, and equity-based down payments that eliminate these traditional barriers.

This comprehensive guide breaks down the real differences between one-time close and two-time close construction loans, debunks the five biggest myths holding buyers back, and reveals strategic advantages most loan officers never mention—like soft equity growth and rate lock flexibility.

Whether you're comparing loan types, trying to qualify without selling your current home, or looking to preserve cash while building, understanding these options could save you thousands and unlock possibilities you didn't know existed.

Ready to separate construction loan fact from fiction?