ONE-TIME CLOSE CONSTRUCTION
Build a house with one loan, one closing, and one set of closing costs — instead of a construction loan followed by a separate permanent mortgage months later. Your rate is locked before ground is broken.
One approval covering the build and the permanent loan.
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The traditional route is a short-term construction loan, then a second application, second appraisal and second closing to convert it to a mortgage. Every one of those steps is a place the deal can fail.
With a two-loan structure you have to re-qualify at the end. If your income changed, or rates moved, or the appraisal came in short, you can be left holding a construction loan you cannot convert. One-time close removes that cliff entirely.
The permanent rate is set before construction begins, with extended lock options covering the build period. You are not exposed to twelve months of rate movement.
Two closings means two sets of fees, two title policies, two rounds of paperwork. Consolidating them is real money, not a rounding error.
A builder wants to know the financing will still be there at the end. A single-close approval is a materially stronger commitment than a construction line with a conversion condition attached.
Construction lending is where inexperienced lenders come unstuck. Draw schedules, builder approval, inspections, extended locks — none of it is hard, but all of it has to be handled by someone who has done it before.
The Arrowood Team offers a $5,000 Closing Guarantee. After a fully underwritten pre-approval we can issue a guarantee certificate, and if the loan does not close, Tim pays $1,000 to the borrower and $4,000 to the seller. Eligibility depends on the transaction — ask us whether it applies to yours, or read the full terms on our Closing Guarantee page.
The national average purchase closes in about 45 days. Our process targets 21 to 30, which is often the difference between winning a house and coming second.
We are at 119 Boone Ridge Dr in Johnson City. Tim Arrowood (NMLS #393468) personally works your file — no transferred queues, no loan officer who has moved on by underwriting.
If your build timeline or your builder makes a one-time close the wrong structure, we will say so. Some projects genuinely suit a two-loan approach and we would rather tell you that at the start.
One-time close is a structure, not a single product. It runs on top of three different programs.
Zero down for eligible veterans, on a new build. Genuinely one of the strongest financing products available anywhere, and widely assumed not to exist. How it works in Johnson City.
Low down payment with FHA’s more flexible credit standards, applied to a build rather than an existing home. What to know before you build.
For borrowers with stronger credit and a larger down payment, usually the lowest long-term cost of the three.
One-time close financing covers permanently-affixed manufactured and modular homes, which is a large and growing part of this market. Why demand is rising across the Tri-Cities.
Johnson City, Kingsport and Bristol. Existing inventory stays tight and prices for turnkey homes reflect it. For a lot of buyers, building is not a luxury choice — it is the cheaper route to the house they actually want.
Southwest Virginia and the I-81 corridor. We write construction loans on both sides of the state line, and manufactured and modular builds are a significant share of it. If you are within 50 miles of these cities the economics are worth running.
Land and site conditions. Sloped lots, wells, septic systems and long driveways are normal here and every one of them affects the appraisal and the cost breakdown. A lender who has only written construction loans on flat suburban lots will find that out the expensive way.
Construction underwriting looks at you, the builder, and the project.
Have a builder and a lot but no idea where to start? Call (423) 406-1567.
1. What actually makes it “one-time close”?
You close a single loan that covers both the construction period and the permanent mortgage. Funds release to your builder on a draw schedule as work is completed and inspected, and when the build finishes the loan converts automatically to your permanent mortgage. No second application, no second appraisal, no second closing, and no risk of failing to qualify at the end.
2. Do I make payments while the house is being built?
Yes, but interest-only, and only on the funds that have actually been drawn. Early in the build when little has been disbursed the payment is small; it rises as the house goes up. Many borrowers are paying rent at the same time, so this is worth budgeting properly at the start.
3. Can I use a VA loan to build a house?
Yes — VA one-time close construction exists, with zero down for eligible veterans, and it is one of the most underused products in the market. Most veterans have been told it is not possible. We write these regularly across the Tri-Cities and Southwest Virginia.
4. What if I already own the land?
That usually helps considerably. Equity in land you already own can count toward your down payment, and in some cases covers it entirely. Bring the deed and any lien information to the first conversation.
5. How long does the whole process take?
Getting to closing typically runs 30 to 45 days depending on how quickly plans, the cost breakdown and builder approval come together. Construction itself is your builder’s timeline — commonly six to twelve months. Build periods are capped, so a realistic schedule matters more than an optimistic one.
6. Can I finance a manufactured or modular home this way?
Yes, for homes permanently affixed to a foundation. This is a large part of what we write, particularly in Southwest Virginia. The appraisal and eligibility rules differ from stick-built, so tell us early which you are planning.
Tennessee: Johnson City, Kingsport, Bristol, Jonesborough, Elizabethton, Greeneville, Piney Flats and the surrounding Tri-Cities.
Virginia: Bristol and Southwest Virginia along the I-81 corridor.
Preferred Rate is licensed in AL, AZ, CA, CO, FL, GA, IL, IN, KS, KY, LA, MA, MD, MI, MO, MS, NC, OK, OR, TN, TX, VA, WA and WI, and operates under American Pacific Mortgage in NV. The Arrowood Team originates primarily in Tennessee and Southwest Virginia.
119 Boone Ridge Dr, Suite 203
Johnson City, TN 37615
(423) 406-1567
arrowoodteam@preferredrate.com
Bring a lot, a builder, or just an idea. Fifteen minutes tells you what you can build and what the finished payment looks like.
NMLS CONSUMER ACCESS LINK: NMLS #1850
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© 2024 American Pacific Mortgage Corporation. For informational purposes only. No guarantee of accuracy is expressed or implied. Programs shown may not include all options or pricing structures. Rates, terms, programs and underwriting policies subject to change without notice. This is not an offer to extend credit or a commitment to lend. All loans subject to underwriting approval. Some products may not be available in all states and restrictions may apply. Equal Housing Opportunity.
Refinancing may result in finance charges that may be higher over the life of the loan. Consult with your loan advisor for details.
Not available in New York. Licensed as Preferred Rate in AL, AZ, CA, CO, FL, GA, IL, IN, KS, KY, LA, MA, MD, MI, MO, MS, NC, OK, OR, TN, TX, VA, WA, and WI. Preferred Rate operates under American Pacific Mortgage in NV. AZ BK 1014819. CA #01215943. Regulated by the Colorado Division of Real Estate. Georgia Residential Mortgage Licensee. NV MB 164. Licensed under the Oregon Consumer Finance Act. OK MLO13426.
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The Department of Financial and Professional Regulation (Department) evaluates our performance in meeting the financial services needs of this community, including the needs of low-income to moderate-income households. The Department takes this evaluation into account when deciding on certain applications submitted by us for approval by the Department. Your involvement is encouraged. You may obtain a copy of our evaluation. You may also submit signed, written comments about our performance in meeting community financial services needs to the Department.” (Source: P.A. 101-657, eff. 3-23-21.)
CONSUMERS WISHING TO FILE A COMPLAINT AGAINST A COMPANY OR A RESIDENTIAL MORTGAGE LOAN ORIGINATOR SHOULD COMPLETE AND SEND A COMPLAINT FORM TO THE TEXAS DEPARTMENT OF SAVINGS AND MORTGAGE LENDING, 2601 NORTH LAMAR, SUITE 201, AUSTIN, TEXAS 78705. COMPLAINT FORMS AND INSTRUCTIONS MAY BE OBTAINED FROM THE DEPARTMENT’S WEBSITE AT WWW.SML.TEXAS.GOV. A TOLL-FREE CONSUMER HOTLINE IS AVAILABLE AT 1-877-276-5550. THE DEPARTMENT MAINTAINS A RECOVERY FUND TO MAKE PAYMENTS OF CERTAIN ACTUAL OUT OF POCKET DAMAGES SUSTAINED BY BORROWERS CAUSED BY ACTS OF LICENSED RESIDENTIALMORTGAGE LOAN ORIGINATORS. A WRITTEN APPLICATION FOR REIMBURSEMENT FROM THE RECOVERY FUND MUST BE FILED WITH AND INVESTIGATED BY THE DEPARTMENT PRIOR TO THE PAYMENT OF A CLAIM. FOR MORE INFORMATION ABOUT THE RECOVERY FUND, PLEASE CONSULT THE DEPARTMENT’S WEBSITE AT WWW.SML.TEXAS.GOV.”
THE DEPARTMENT MAINTAINS A RECOVERY FUND TO MAKE PAYMENTS OF CERTAIN ACTUAL OUT OF POCKET DAMAGES SUSTAINED BY BORROWERS CAUSED BY ACTS OF LICENSED RESIDENTIALMORTGAGE LOAN ORIGINATORS. A WRITTEN APPLICATION FOR REIMBURSEMENT FROM THE RECOVERY FUND MUST BE FILED WITH AND INVESTIGATED BY THE DEPARTMENT PRIOR TO THE PAYMENT OF A CLAIM. FOR MORE INFORMATION ABOUT THE RECOVERY FUND, PLEASE CONSULT THE DEPARTMENT’S WEBSITE AT WWW.SML.TEXAS.GOV
