One of the greatest benefits of a USDA construction-to-permanent loan is that it's a single-close mortgage. With many new-home construction projects, you'll have to go through the lending process twice — once for the construction loan and once to refinance that into a standard mortgage to purchase the final property.
With a USDA construction loan, you only need to apply for one loan and go through the entire process once. You'll pay only one set of closing costs, and when it's all said and done, you'll walk away with a USDA-backed 30-year mortgage on your new home. Along the way, you can use the loan to cover various construction-related expenses, from the initial land purchase to permitting, design and landscaping fees.
The downside of USDA loans is that they're more restrictive than conventional mortgages. Consequently, many buyers don't fit the strict income limits and location requirements needed to qualify for a USDA new construction loan. It also may be difficult to find a lender that offers this loan.