Previously, when you wanted to build a custom home, you would go to a local construction lender who usually charged higher rates and fees for a construction loan only.  At the completion of construction, you would then go to a traditional mortgage lender to get the permanent loan. Today, a few national lenders offer Construction to Permanent loans that include the construction loan and the permanent loan all in one.  This reduces closing costs and difficulty of arranging financing twice.  There used to be several banks offering these types of loans, but now there are just a few.