A one-time close mortgage is a type of loan that combines the financing for the purchase of a home and the construction of that home into one single transaction, as opposed to separate loans for each stage. This type of mortgage loan is also commonly referred to as a construction-to-permanent loan.

The loan is used to finance the construction of a new home, and after the construction is completed, the loan is automatically converted to a permanent mortgage loan. This means that the borrower only needs to go through the loan application process once, and only pays closing costs once, saving time and money compared to taking out separate loans.

One-time close mortgages are popular among borrowers who are building a new home because they offer several advantages. First, it eliminates the need for a second closing, which saves time and money. Second, it provides greater flexibility in terms of the construction process, allowing borrowers to make changes and additions to the home as needed without having to go through the loan application process again. Finally, it allows borrowers to lock in a mortgage rate for the entire life of the loan, providing stability and predictability in terms of monthly payments.