US 2028 Construction Loan
2028 construction-to-perm loan: interest-only during 6-12 month build, then converts to 30-yr mortgage. Single-close saves $3,000-$6,000 vs separate loans.
| Loan amount | — |
| Construction phase (months) | — |
| Total construction interest | — |
| Permanent monthly P&I | — |
Construction-to-permanent loans (single-close) finance home building + automatically convert to 30-year mortgage at completion. Interest-only during 6-12 month construction phase, then standard amortization begins. Avoids double closing costs ($3,000-$6,000 savings) vs two separate loans.
Single-Close Advantages
One application, one underwriting, one closing. Rate locked at application for permanent phase. No second-closing risk of rate increase, lender denial, or appraisal issues. Industry trend: single-close dominant for new construction post-2020.
Two-Close Alternative
Construction loan (12-18 month) then refi to permanent. Two closings, two sets of fees. Risk: cannot qualify for permanent if income or credit changes during build. Used when builder requires specific construction lender.
Draw Schedule
Funds released in stages tied to construction milestones (foundation, framing, drywall, etc.). Interest only on amount drawn — saves vs paying interest on full loan from day one. Borrower or builder responsible for ensuring inspections complete on time.
Last updated May 2026. Sources: CFPB.