Denver’s resale inventory in desirable neighborhoods has been chronically constrained for years. In Hilltop, Cherry Creek, and Washington Park — the neighborhoods where professionals, physicians, and executives most consistently want to buy — well-priced homes sell in days, not weeks, and the supply of updated, move-in-ready properties on quality lots rarely meets demand. That inventory reality, combined with Denver’s active land development across the metro’s eastern and northern corridors, has made building a genuinely competitive alternative to buying resale — and a One-Time Close Construction loan the right financing structure for a large and growing segment of Denver buyers.
The metro currently has over 357 active new construction communities. Painted Prairie, near Denver International Airport along the Aurora border, is one of the most talked-about master-planned developments in the region — a walkable, neo-traditional community with multiple builders active and a town center underway. Reunion in Commerce City features 10 neighborhood parks, 8 acres of lakes, and a resort-style amenity center with a pool, gym, and community spaces. Arcadia by D.R. Horton, 10 miles from downtown and adjacent to Cherry Creek State Park, offers modern paired homes for buyers who want urban proximity without urban prices. Active builders across the metro — Century Communities, Richmond American, D.R. Horton, Toll Brothers, Brookfield Residential, and MDC Holdings — give buyers meaningful choices at multiple price points and locations.
There is also one Denver-specific construction reality that buyers and their lenders need to understand before breaking ground: Colorado’s soil is rich in Bentonite clay, a reactive material that expands when wet and contracts when dry. Older homes across Denver show the effects — foundation movement, cracked driveways, uneven floors. Modern builders address this with structural wood floors, deep caissons, and pier-and-beam systems that isolate the structure from soil movement. This engineering adds cost to any custom build and should be factored into the project budget from the beginning. Ryan Lehrman, NMLS #235295, structures One-Time Close Construction loans with these Denver-specific project realities accounted for.
A One-Time Close Construction Mortgage Loan — sometimes called a Construction-to-Permanent loan or a Single-Close loan — combines construction financing and permanent mortgage financing into a single loan with a single closing.
The process moves through three phases:
The Construction Phase — Funds are disbursed to your builder in draws as construction milestones are completed. You typically make interest-only payments on the drawn balance during this period. The permanent rate is already locked at the beginning — you're not exposed to rate changes during the build.
The Conversion Phase: — When your builder achieves certificate of occupancy, the loan automatically converts from construction financing to permanent mortgage financing. No new appraisal. No new underwriting. No second closing.
The Permanent Phase — Your regular mortgage payments begin. You're now in a standard amortizing loan at the rate you locked before construction started — regardless of where rates moved during your build.
Key Features:
Single closing, single appraisal, single set of closing costs
Rate locked at the start — no market rate risk during construction
Automatic conversion from construction to permanent upon completion
Interest-only payments during the construction draw period
Eligible for primary residences, second homes, and select investment properties
Colorado Bentonite soil engineering cost accommodation in project budget structure
Works with licensed general contractors and custom home builders across the metro
For builds where the total loan amount falls within Denver County’s $862,500 conforming limit, standard One-Time Close programs offer the most favorable rates and the most flexible down payment requirements. These programs work well for buyers building in Painted Prairie, Reunion, Brighton Crossings, and other metro-area master-planned communities where construction costs and lot prices keep the total project within conventional limits. Down payment requirements typically start at 5% for primary residences.
Custom builds in Hilltop, Cherry Creek, Cherry Hills Village, and other premium Denver neighborhoods routinely exceed $862,500 — often by a significant margin once lot cost, custom finishes, Bentonite mitigation engineering, and landscaping are included in the total project cost. Jumbo One-Time Close programs extend construction financing to $2–$3 million and above, maintaining the single-closing structure and rate-lock protection. Down payment requirements are higher than standard programs, typically 10–20% depending on the total project cost and the lender.
Physicians building a custom home in Denver — whether in Hilltop, near the Anschutz Medical Campus, or in one of the metro’s newer communities — can access One-Time Close Construction programs that carry physician-specific qualifying accommodations: favorable student loan treatment, employment contract qualifying, and no PMI. For residents or fellows building ahead of an attending position, the contract-based income qualification extends into the construction loan as well.
For buyers acquiring raw land or an existing lot in Hilltop, Cherry Creek, or Cherry Hills Village and contracting directly with a custom builder, the Custom Build program structures the construction financing around an owner-selected licensed general contractor rather than a production builder. Draw schedules, inspection milestones, and project timelines are customized to the build rather than applied from a standard template. These programs require more documentation upfront — complete construction plans, a signed builder contract, an itemized budget with contingency, and builder license and insurance verification — but they give buyers the full flexibility of a custom home while maintaining the single-closing, rate-locked structure of a One-Time Close loan.
Painted Prairie
Located in Aurora along the I-70 corridor near Denver International Airport, Painted Prairie is designed as a neo-traditional, walkable community with front porches, alleyways, and a town center anchored by retail, dining, and public spaces. Multiple production builders are active, and the community has drawn attention for its thoughtful design and accessibility to both DIA and downtown Denver via light rail. For buyers financing in this community, the construction loan structure depends on whether you're purchasing a production-built home (builder financing or standard purchase) or contracting for a custom or semi-custom build on an available lot.
Reunion
Reunion in Commerce City — northeast Denver metro — is one of the region's largest master-planned communities. Ten neighborhood parks, 8 acres of lakes, an on-site coffee shop, an expansive recreational center with a pool and gym, and a resident-organized events calendar create genuine community character. Production homes in Reunion are priced below the metro median for comparable square footage, making this one of the most accessible new construction options in the broader Denver area. Multiple builders are active, and the community infrastructure continues to expand with each development phase.
Metro-Wide Builder Activity
Century Communities, Richmond American, D.R. Horton, Toll Brothers, Brookfield Residential, and MDC Holdings collectively maintain active communities across the northern and eastern Denver suburbs — Thornton, Arvada, Brighton, Parker, Castle Rock, and beyond. Prices across these communities range from the high $400,000s for entry townhomes to $1 million and above for larger single-family homes in planned communities with resort-style amenities. Buyers considering a builder community should ask for the total mill levy before signing — Metropolitan District financing, which is how most Colorado master-planned communities fund infrastructure, can add 0.4–0.6% to effective property tax rates above the standard rate.
Construction loan expertise — One-Time Close Construction is a specialty product; Ryan understands draw schedules, builder contracts, and project budget structuring in ways that a generalist lender does not
Denver soil awareness — structures project budgets with Colorado Bentonite clay engineering costs accounted for, so buyers aren't surprised mid-build
Jumbo and Physician construction capability — access to programs covering custom builds in Hilltop, Cherry Creek, and Cherry Hills Village at loan amounts above $862,500
Builder and lender coordination — manages the draw process, inspection milestones, and lender communication so the build stays on track financially
Rate-lock guidance — Denver build timelines vary significantly; Ryan advises on rate lock structure and extension options based on realistic project completion timelines
No surprises — every cost, every milestone, and every contingency is discussed before the closing table, not discovered after
Ryan Lehrman, NMLS #235295
Borrower profile Primary residence, second home, and select investment property builds eligible; standard income documentation for conventional programs; physician and Jumbo programs available with program-specific qualifying criteria
Builder requirements: Licensed and insured general contractor in Colorado required; production builders in approved communities pre-qualified by most lenders; custom builders require license verification, insurance documentation, and review of builder contract and project budget
Project documentation: Completed construction plans or production builder specs, signed builder contract, itemized budget with contingency allowance (typically 5–10%), and appraiser-supported as-completed value
Down payment: Typically 5% on standard programs; 10–20% on Jumbo One-Time Close; physician programs may offer lower down payment options depending on loan amount and program
Pre-construction consultation — Pre-construction consultation
Documentation assembly — construction plans or production builder specs, signed builder contract, itemized budget, builder license and insurance verification, standard income and asset documentation; Bentonite engineering specifications included in budget review if applicable
Appraisal — lender orders a construction appraisal based on plans and specs to establish the as-completed value; this appraisal governs the loan amount and sets the permanent mortgage structure
Closing and construction begins — single closing executed before the first shovel hits the ground; rate locked; draw schedule established; construction proceeds with funds disbursed at verified milestones
Certificate of occupancy and conversion — upon completion and CO issuance, the loan automatically converts to permanent financing; regular mortgage payments begin; no second closing required
Colorado's soil contains high concentrations of Bentonite, a clay mineral that expands significantly when wet and contracts when dry. This cyclical movement can crack foundations, shift driveways, and damage structures built without adequate engineering mitigation. Modern Denver builders address this with structural wood floors, deep-drilled caissons or piers, and pier-and-beam foundation systems that physically isolate the structure from the expansive soil. These engineering solutions add real cost — often $30,000 to $80,000 or more depending on lot conditions and build size — that should be reflected in your construction budget and, by extension, your construction loan amount. Ryan builds this cost awareness into every Denver construction loan consultation so it doesn't surface as a surprise mid-build.
Yes. Physician One-Time Close Construction programs combine the physician loan's favorable qualifying structure — no PMI, student loan treatment at IBR/IDR payment, employment contract qualifying for attendings who haven't started yet — with the single-closing, rate-locked construction-to-permanent structure. If you're a resident at UCHealth building ahead of a fellowship or attending position, the construction timeline can often be structured to align with your transition. If you're an attending in practice near the Anschutz campus, you have access to both standard and Jumbo physician construction programs depending on your project budget. Ryan has structured these loans for Denver physicians specifically and knows the documentation approach that works.
Yes, though the structure differs slightly from a new-community production build. With an existing lot, the construction loan covers the build cost only — not the lot, since you already own it — and the as-completed appraisal establishes the total finished value. In Hilltop, where finished custom homes on quality lots routinely trade from $2 million to $4 million and above, the total project will almost certainly require a Jumbo One-Time Close program. Ryan will need your construction plans, a signed contract with your licensed Colorado builder, an itemized budget, and the lot deed documentation. The single-closing structure still applies — you close on the construction loan before the build starts, and the loan converts to permanent financing upon CO.
Metropolitan Districts are quasi-governmental entities that Colorado developers use to fund infrastructure — roads, water, sewer, community amenities — in master-planned communities. The debt they issue is repaid through an additional property tax mill levy that appears on your annual tax bill and is included in your monthly mortgage escrow. In communities like Painted Prairie or Reunion, total mill levies can run 0.4–0.6% above the standard Denver-area property tax rate. On a $600,000 home, that translates to $2,400–$3,600 per year in additional property taxes — real money that affects both your monthly payment and your DTI calculation during qualifying. Ryan factors total mill levies into the qualifying analysis for every construction loan involving a Metro District community.
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Originally from Harrisburg, Pennsylvania, I moved to Phoenix to attend Arizona State University and have proudly called Phoenix home ever since.
My journey into the mortgage industry began with a friend’s encouragement, who saw how my energy and people-first mindset could make a difference. He was right — I found my calling.
I’ve always embraced what makes me different. With ADHD as my secret weapon, I thrive in fast-paced, detail-heavy environments. I’ve built my career on clear communication, creative problem-solving, and putting clients first, always.
Outside of work, my greatest motivation is my wife and three amazing kids. I’d be honored to help guide you through your lending journey with care, clarity, and commitment.
