What Is a One-Time Close Conventional Construction Loan?
The One-Time Close Conventional Construction LoanA short-term loan that funds home building in stages, typically converted into a permanent mortgage once the home is complete. More may be the simplest construction loanA short-term loan that funds home building in stages, typically converted into a permanent mortgage once the home is complete. More there is! You close once, lock your permanent rate at closingClosing is the meeting — typically in person — where all parties sign the final loan and property paperwork and the transaction becomes official. It’s the last step in the process, the point where months of paperwork, verification, and waiting turn into... More, and when construction is complete your loan automatically converts to your long-term mortgage.
This loan is offered through Click n’ Close and originated through Bookend Lending LLC, your local NH mortgage broker.
At a Glance
| Loan Type | Conventional (Conforming / High Balance) |
| Occupancy | Primary Residence or Second Home |
| Units | 1-unit single family |
| Min. Credit Score | 680 |
| Max LTV | 90% (95% considered on exception if selling current home with substantial equityEquity is the portion of your home's value that you own. It's calculated by subtracting the balance of your mortgage and any other loans secured by the home from its current market value. Your equity grows in two ways: by paying down... More) |
| Max Loan Amount | Up to $832,750 in most NH counties; up to $962,550 in Rockingham & Strafford counties (2026 high-balance limits) |
| Construction Term | 6, 9, or 12 months |
| Loan Term | 15 or 30 years, fixed rate |
| Down Payment Assistance | Not available |
| Investment Properties | Not eligible |
| Manufactured Homes | Not eligible |
How It Works: Four Phases
Phase 1 — Get It All Together
This is where the real work happens — and where having the right guidance matters most. You’ll need to confirm you qualify for the loan, find a lot if you don’t already have one, select a builder, choose house plans, work through the specifications, and get a finalized bid from your builder.
Our Construction Resource Center offers tips and tools to help you navigate this early stage. And feel free to reach out to Renée Duval directly — she’s guided many NH borrowers through the construction process and can help you understand what to expect before you ever formally apply.
Phase 2 — Close Once
Your credit is underwritten, the builder is approved, and both your construction and permanent loan terms are set before you sign a single document. You close one time. The lot is paid off at closingClosing is the meeting — typically in person — where all parties sign the final loan and property paperwork and the transaction becomes official. It’s the last step in the process, the point where months of paperwork, verification, and waiting turn into... More. Lot equityEquity is the portion of your home's value that you own. It's calculated by subtracting the balance of your mortgage and any other loans secured by the home from its current market value. Your equity grows in two ways: by paying down... More can be used toward your down payment and closing costsClosing costs are the fees and charges due at closing beyond the down payment itself — the collection of costs that pay for all the work, insurance, and government processes required to originate a loan and transfer (or refinance) a property. They... More.
Phase 3 — Construction Draws
Once closed, your builder requests draws through Trinity Loan Administration as work is completed. Funds are never advanced for materials — only for completed work. Up to 6 draws are included (additional draws available at $395 each). An independent inspector confirms progress before each draw is released. Funds are typically wired to the builder within 24 hours of approval.
Phase 4 — Conversion
When construction is complete, a final inspection and appraisalAn appraisal is an independent, professional opinion of a property's value. It is completed by a licensed appraiser who examines the home, studies recent sales in the area, and applies established valuation methods to determine what the property is worth in the... More recertification are done, title is updated, and your loan automatically converts to your permanent mortgage. Your first full payment begins the month after conversion. No second closingClosing is the meeting — typically in person — where all parties sign the final loan and property paperwork and the transaction becomes official. It’s the last step in the process, the point where months of paperwork, verification, and waiting turn into... More. No trip back to the closingClosing is the meeting — typically in person — where all parties sign the final loan and property paperwork and the transaction becomes official. It’s the last step in the process, the point where months of paperwork, verification, and waiting turn into... More table.
What You Pay During Construction
With a Conventional OTC, you pay interestInterest: the cost of borrowing money, charged as a percentage of the outstanding balance and paid in arrears (unlike rent, which is paid in advance). More only on funds actually disbursed — not on the full loan amount. Monthly interestInterest: the cost of borrowing money, charged as a percentage of the outstanding balance and paid in arrears (unlike rent, which is paid in advance). More statements are sent on the 5th of each month for the prior month’s draws, with payment due on the 20th. You will also escrow for taxes and insurance, meaning your monthly statement will include 1/12th of your estimated annual taxes and insurance.
The builder can potentially pay construction interestInterest: the cost of borrowing money, charged as a percentage of the outstanding balance and paid in arrears (unlike rent, which is paid in advance). More on your behalf, subject to Fannie Mae guidelines, if the loan is structured that way from the beginning.
Your Rate
Your permanent rate is locked at closingClosing is the meeting — typically in person — where all parties sign the final loan and property paperwork and the transaction becomes official. It’s the last step in the process, the point where months of paperwork, verification, and waiting turn into... More. Generally the rate runs about 1% (or a little more) higher than the going rate for a regular purchase loan. However, within 30 days of signing your modification documents you may be able to float down to market rate plus 0.25%. So if rates stay the same or even tick up slightly during construction, you can still benefit from a lower final rate.
Rates are based on your construction term — 6, 9, or 12 months. The longer the term, the higher the rate. It’s important to be realistic about your timeline, because repricing an expired rate lock can be expensive, especially if rates have risen.
What Homes Qualify
Eligible: Site-built homes and modular homes. Pre-starts are generally not allowed, but may be considered on a case-by-case basis for strong files with substantial equityEquity is the portion of your home's value that you own. It's calculated by subtracting the balance of your mortgage and any other loans secured by the home from its current market value. Your equity grows in two ways: by paying down... More and excellent credit.
Not eligible: Manufactured homes, log homes, metal homes, post-frame homes, container homes. No self-builds. No spec homes. No 2–4 unit properties.
Builder Requirements
The builder must be registered and accepted by Click n’ Close before the loan can close. Builder approval typically takes 3–5 business days and is valid for 6 months.
In New Hampshire, general contractors are not licensed at the state level. However, the builder must demonstrate a track record of completed projects, carry the appropriate insurance, and be in good standing with suppliers and subcontractors. The borrower may not perform any of the construction work.
The builder will need to provide:
- Current YTD Profit & Loss statement
- Prior year corporate tax return
- Most recent corporate bank statement
- Executive summary of company and principals’ experience
- Builder’s license(s) where applicable (retailer, installer, etc.)
- Certificate of General Liability Insurance (Acord 25 Form) — minimum $1,000,000 per occurrence, with Click n’ Close listed as certificate holder
- Builder’s Risk Insurance with Click n’ Close as certificate holder
- Fixed-price construction contract (no cost-plus contracts)
- Plans, specs, and elevations
- Line-item cost breakdown
- Plot plan
- Permit Advisory
Only one builder/contractor is allowed on this program.
Key Program Rules
- The loan amount cannot be increased after closingClosing is the meeting — typically in person — where all parties sign the final loan and property paperwork and the transaction becomes official. It’s the last step in the process, the point where months of paperwork, verification, and waiting turn into... More. If construction costs exceed the loan amount, the borrower pays the difference out of pocket directly to the builder.
- No appraisalAn appraisal is an independent, professional opinion of a property's value. It is completed by a licensed appraiser who examines the home, studies recent sales in the area, and applies established valuation methods to determine what the property is worth in the... More transfers — a fresh appraisalAn appraisal is an independent, professional opinion of a property's value. It is completed by a licensed appraiser who examines the home, studies recent sales in the area, and applies established valuation methods to determine what the property is worth in the... More is required.
- Pools, barns, and guesthouses may be included if supported by comparable sales.
- If construction exceeds 12 months, a credit requalification may be required and the rate will reprice to current market.
- Cost-plus contracts are considered on a case-by-case basis only, and require a Guaranteed Maximum Price contract.
Program Fees (Conventional OTC)
- CNC Admin Fee: $1,099
- Construction Admin Fee: 1% of Loan Amount
- Modification Fee: $300
- Feasibility Study: $195
- Draw Inspection Fees: $395 per draw (up to 6 draws)
- Title Update: $300 or actual cost
- Final Survey: $1,000 or actual cost
- Final Inspection: $350
- Plus all typical fees associated with any mortgage loan
NH Site Considerations — Read This Before You Buy Land
Building in New Hampshire means thinking through your site before you ever sign a purchase contract. Here are the questions you need answered early.
Public water and sewer, or well and septic?
If your lot is not served by municipal water and sewer, you will need a private well and/or septic system. This is common across much of NH — rural towns, lakefront properties, and large parcels often rely entirely on private systems.
If you will need a septic system, the design must be approved by the NH Department of Environmental Services (NHDES) before the loan can close. Septic design approval is site-specific and can take time, so start this process early. You can find information on the NHDES subsurface program at des.nh.gov.
Well and septic placement matters.
If your lot will have both a private well and a septic system, the placement of all three — the well, the home, and the septic field — must comply with NH setback requirements. Wells must be a minimum distance from septic systems, property lines, and the home itself. Your plot plan must reflect these setbacks, and the lender will need a well and septic certification before the loan converts to permanent financing.
Road access.
The property must be accessible by a paved or all-weather road that meets local standards.
Lot size.
There is no maximum acreage restriction on the Conventional OTC, but the appraiser must be able to support value using comparable sales. Very large parcels or lots with significant excess land can create appraisalAn appraisal is an independent, professional opinion of a property's value. It is completed by a licensed appraiser who examines the home, studies recent sales in the area, and applies established valuation methods to determine what the property is worth in the... More challenges.
Important: No work — by the borrower or the builder — may begin prior to closingClosing is the meeting — typically in person — where all parties sign the final loan and property paperwork and the transaction becomes official. It’s the last step in the process, the point where months of paperwork, verification, and waiting turn into... More. Site clearing, grading, or any construction activity before closingClosing is the meeting — typically in person — where all parties sign the final loan and property paperwork and the transaction becomes official. It’s the last step in the process, the point where months of paperwork, verification, and waiting turn into... More will disqualify the project.
Ready to Build?
Bookend Lending LLC is your local NH mortgage broker for One-Time Close construction financing. We’ll walk you through whether this program fits your land, your builder, and your timeline before you ever formally apply. Call us or get a quote to start the conversation.
Bookend Lending LLC, NMLS #2557411, is an independent mortgage broker licensed in New Hampshire. Construction financing offered through Click n’ Close, Inc. This is not a commitment to lend. All loans subject to borrower qualification, property review, and program availability. Programs and rates subject to change without notice.