Fairway Independent Mortgage Corporation
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    Build Your Dream Home

    1x Close Construction Loans – Build with Confidence

    Combine land, construction, and permanent financing into one loan with one closing. Available for FHA, VA, and Conventional loans.

    One closing, one set of closing costs
    Buy land and build a home
    Rebuild on an existing homesite

    Find Out If You Qualify Today

    Check your Construction Loan eligibility in 60 seconds.

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    What is a 1X Close Construction Loan?

    A one-time (1X) close construction-to-permanent mortgage combines the land, construction, and permanent financing into one loan with one closing. During construction, you typically make interest-only payments on disbursed funds. Once your home is complete and occupancy requirements are met, the loan converts to a permanent mortgage.

    One Closing

    Save money with only one set of closing costs for the entire project.

    Streamlined Draws

    Efficient construction draws managed by our dedicated construction department.

    Flexible Options

    Buy land and build, build on land you own, or rebuild on an existing homesite.

    1X Close vs. 2X Close Construction

    Understanding the difference between a single-closing and a two-closing construction loan.

    FeatureOne-Time Close (1X)Two-Time Close (2X)
    Loan Structure
    • Combines construction financing and permanent mortgage into a single loan.
    • Only one closing—before construction begins.
    • The loan automatically converts to a permanent mortgage when construction is complete.
    • A modification agreement is provided at completion detailing any changes to loan amount or floated down rate.
    • Involves two separate loans: a short-term construction loan and a permanent mortgage.
    • Requires two separate closings, two sets of closing costs, and requalification.
    Borrower Qualifications
    • Qualified once upfront based on projected final home and current income.
    • Less risk of disqualification later—helpful for buyers concerned about future shifts.*
    • Borrower must requalify for the permanent loan after construction.
    • Any changes in credit score or employment can impact final approval.
    Interest Rates
    • Interest rate on the permanent loan is locked at the beginning.
    • Protects borrowers from rising rates during construction.
    • Includes a free float-down review during the modification process.
    • Construction loan rate is usually interest-only and variable.
    • Permanent loan rate is locked at the second closing—a risk if rates rise.
    Underwriting Criteria
    • Stricter upfront underwriting as the lender commits long-term.
    • Requires detailed builder approval, project plans, and budgets at closing.
    • Underwriting is focused on the short term; permanent financing is underwritten later.
    • Can offer more flexibility for borrowers or builders needing mid-project changes.

    *Note: There still may be need for re-qualification should the construction exceed the allowable 12 month construction term. Appraisal requires a 1004D upon completion. Should the appraiser notate declining market value, a new appraisal would be required.

    The Timeline

    Construction loans can close as fast as standard loans if the full project package is complete. Having plans, specs, contract, and budget ready upfront prevents delays.

    Note on Permits:

    Permits aren't required at closing, but local approval timelines can be slow. Permits are required before the first draw. Bottom line: No approved plans = not ready to close.

    1

    Future Dream Homeowner

    You decide: 'I want to build my house!'

    2

    Pre-Qualification

    Contact a Fairway Loan Officer to explore available financing options.

    3A

    Borrower Owns Land

    Start your search for a contractor to build your home (Skip to Step 4).

    3B

    Borrower Needs Land

    Your Loan Officer connects you with a local Realtor to help find the perfect land/lot location.

    4

    Hire a Contractor

    Find and provide your Fairway LO with a local contractor to build your dream home. (Note: LOs do not provide contractors, but can offer trusted referrals).

    5

    Contractor Approval

    Granite will assess the contractor to ensure they meet qualifications (typically 3 business days for review & decision).

    6

    Application Processing

    Loan Officer & Processor collect all credit docs AND include the Contractor Acceptance, Project Review & Recommendation from Granite, then submit to underwriting.

    7

    Loan Decision

    Underwriting reviews the borrower(s), contractor approval, and proposed construction to decision the loan.

    8

    Loan Commitment

    If approved, underwriting issues loan terms, interest rate, loan amount, and acceptance of the contractor and proposed construction project and budget.

    9

    Closing

    Title is ordered, loan is closed, and the initial draw will be initiated by Granite.

    10

    Construction Starts

    Granite manages all fund disbursements, mechanic's lien waivers, title documentation review, and required inspections.

    11

    Construction Progression

    Granite continuously ensures contractor licenses are valid, insurance is in good standing, and construction remains within budget and on target.

    12

    Certificate of Completion

    Contractor provides a certificate of completion. Final inspections are ordered. (Note: The float-down process can only begin after this is received and the final draw is requested).

    13

    Final Loan Documents

    Once inspections are complete, Fairway issues final loan documents to be signed, converting the 'Construction' portion into a singular 'Permanent' loan.

    14

    Final Draw & Disbursement

    Finalized documents authorize the final draw to the contractor and convert the title policy into a 'Final' status.

    Run the Numbers

    Use our mortgage calculator to estimate your permanent monthly payments.

    Mortgage Calculator

    Estimate your monthly payments

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    Estimated Monthly Payment*

    $550
    Principal & Interest
    $0
    Property Taxes*
    $400
    Home Insurance
    $150

    *Hypothetical monthly mortgage payments reflect hypothetical principal & interest amounts rounded-sm to the nearest dollar amount and do not include estimated insurance, taxes, or other possible fees. These figures and rates are for educational purposes only and do not reflect an official mortgage loan offer.

    Want exact numbers for your construction project?

    Free Affordability Check

    See What You Can Afford in 60 Seconds

    Stop guessing. Get a realistic estimate of your maximum home price and monthly payment based on current Texas rates and guidelines.

    • No credit check required
    • Includes estimated Texas property taxes*
    • Instant results delivered to you

    Financial Details

    Step 1 of 2: Let's look at the numbers.

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    Your Local Texas Construction Loan Professional

    We proudly serve future homeowners across the great state of Texas. Whether you're building in the Hill Country near Austin, a custom home in the suburbs of Dallas, or property near San Antonio, our local knowledge ensures you get the right construction loan for your specific project.

    Ready to Start Building?

    Take the first step toward your custom dream home. Spots fill quickly each week, so schedule your free consultation or apply online today.