For new home construction, a construction to permanent loan with a draw schedule that converts into a standard type of 30 year mortgage when the home is completed.  This is otherwise known as a construction loan.  

The Buyer of the new construction home obtains this type of financing.  They have one closing only, which is on the lot.  There is a “draw schedule” where funds are released to the Buyer by their bank to pay the Builder as the home is being built, at various scheduled stages.  The bank makes inspections before releasing draws to verify completion of items.  The Buyer only pays interest on the portion of funds that are released, not on what the overall price is.  Upon issuance of a certificate of occupancy from the town, the home is now deemed complete and the construction loan converts into permanent 30 year financing.  Down payment as low as 5%.

Sample Lenders:  

20% Down Payment:  Chelsea Groton Bank & Savings Institute Bank

5% Down Payment:  Putnam Savings Bank