Fha Construction Loan 2015 How Do Construction loans work? usda construction To Permanent Loan The USDA One-time close loan program provides borrowers with the ability to combine both the construction and the permanent loan financing into one single loan with one closing and a fixed interest rate.Construction Loan interest rates construction mortgage loans A construction loan is a short-term loan-usually about a year-used to fund the construction of your home, from breaking ground to moving in. With a BB&T construction-to-permanent loan, your construction financing simply converts to a permanent mortgage when your home is complete. · The interest rates for a one lose construction loan usually run 1% higher than a standard mortgage rate, so today they are running at 7%, this would be a 30 year loan giving you up to 9 months to complete the construction. If, you are interested in getting the commercial renovation loan.They can borrow up to 105% of the home’s ARV, as long as the renovations have been outlined and pre-approved in a construction. the vendors once the work has been completed and inspected by a.