Construction-to-Permanent Loans in Wisconsin (Single-Close) — Top Questions, Straight Answers
Thinking about building instead of buying? A construction-to-permanent (C2P) loan lets you finance the build and then roll into your long-term mortgage with one closing. Below are the questions Wisconsin buyers ask me the most - and the blunt, practical answers.
What is a construction-to-permanent (single-close) loan?
It's one loan that funds the build in draws and then automatically converts to your permanent mortgage when the home is complete - no second closing. That means one set of closing costs, one underwriting process, and fewer surprises. Bankrate+1
How is this different from a construction-only loan?
Construction-only loans often require a second closing (and second round of costs) to move into a standard mortgage. Single-close C2P avoids that friction and duplication. Bankrate
What makes Union Home Mortgage's program attractive?
- Interest-only during construction. Keeps monthly payments lower while you build. uhm.com
- Multiple program paths. Conventional, FHA, VA, USDA options depending on qualification and property. uhm.com
- Local, hands-on process with my team shepherding you from plans to move-in (yes, including builder coordination).
Big advantage: is my draw rate the same as my final locked rate?
With our program: yes - your closing rate equals your draw rate. That's a real advantage vs. setups that float a higher construction rate and then reset later. (Industry examples exist where lenders fix the same rate across both phases, underscoring why this feature matters.) tvfcu.com+1
How do draw schedules work?
Funds are released in stages (foundation, framing, mechanicals, finish, etc.). An inspector verifies progress at each stage and we disburse accordingly - fast and clean so your builder keeps moving. Bankrate
Do I need to re-qualify when the home is done?
With a single-close C2P, you don't re-apply or re-close; the loan modifies to permanent terms after final inspection/CO. (Delivery to agencies like Fannie Mae happens after conversion.) Fannie Mae+1
Can I tear down and rebuild on a lot I already own?
Yes - a tear-down/rebuild can use a single-close structure; the loan converts to permanent after completion. Fannie Mae
What are payments like during construction?
Generally interest-only on funds drawn; after conversion, you pay a standard amortizing mortgage based on your locked rate and chosen term. uhm.com
What credit score, down payment, and reserves are typical?
It varies by program (Conventional/FHA/VA/USDA), property type, and full file strength. Construction loans often require stronger files than existing-home purchases; we'll map the best path for your scenario. (Industry norm: construction loans can price higher and expect solid documentation.)
What docs do you need from me and the builder?
- You: income/asset/credit (per AUS and program), plans & specs if you have them, and lot details.
- Builder: license, insurance, budget, draw schedule, and signed contract. (We'll coordinate and keep the paper chase minimal - you know my style.)
Can I lock my rate before we start?
Yes - and with our structure, that locked closing rate is your draw rate, which removes "rate surprise" during the build. Timing rules apply; we'll plan your lock window together.
What if costs change mid-build?
It happens. We can handle change orders; if the budget increases beyond contingency, we'll review options (larger loan amount if eligible, extra cash to close, or scope adjustments). The earlier we manage it, the smoother the finish.
What about second appraisals and extra fees?
One of the wins of single-close C2P is reducing duplicate fees and steps. You avoid a full second closing and the stack of costs that come with it. (Normal construction inspections/draw fees still apply.) Bankrate
Smart next steps
- Talk to me before you pick your builder - I'll help you structure the budget, timeline, and draw plan so approvals are painless.
- Get pre-approved on the construction-to-perm path now so you can finalize plans with confidence.
- Lock the rate when it makes sense - remember, draw rate = locked closing rate with our setup.
Helpful reads (internal)
- Construction-to-Permanent Loans in Wisconsin - 2025 Guide (how single-close works end-to-end).
https://adamzmortgageteam.com/construction-to-permanent-loans-in-wisconsin-build-your-dream-home-with-one-loan-2025-guide/ Union Home Mortgage - One-Time Close Construction Loans in Wisconsin - 2025 (your earlier niche anchor; link juice + interlinking).
https://adamzmortgageteam.com/one-time-close-construction-loans-in-wisconsin-build-your-dream-home-in-2025/ Union Home Mortgage
Trusted resources (external)
- Fannie Mae Construction-to-Permanent FAQs & Guide (single-close fundamentals and delivery rules). Fannie Mae+3Fannie Mae+3Fannie Mae Selling Guide+3
- Bankrate: What Is a Construction-to-Permanent Loan? (clean consumer explainer, updated Sept 2, 2025). Bankrate
Contact & Call to Action
Adam Zeman - Union Home Mortgage | NMLS #870441
Cell: 414-975-2654
Email: azeman@uhm.com
Website: www.mkemortgage.com
24/7 Instant Mortgage Help (AI): https://chatgpt.com/g/g-685422dd22bc8191a39cbdf2be98ec08-wisconsin-real-estate-mortgage-expert
Ready to build? Hit reply with your best time to talk today, call or text 414-975-2654, or start the app so my team and I can map your draw schedule and lock strategy with the builder.