One-Time Close Loans | FHA and VA Construction Loans
Learn all about the VA and FHA versions of the One-Time Close Loan.

This Single Close Loan gets you from construction to occupancy with one mortgage in a streamlined process.

8 Important Topics About One-Time-Close Loans
Billy the Beaver likes One-Time Close Loans

Learn About FHA and VA Construction Loans

Find out how you can build a home on land you already own.


If you've decided to have your new home built from scratch, you might be wondering how to finance the construction and purchase. This Single Close Loan gets you from construction to occupancy with one mortgage in a streamlined process.

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Low Down Payment Loans Available

The One-Time Close Loan is a mortgage program that finances the construction, lot purchase, and permanent loan of a new home, all wrapped up in a single mortgage with a single closing.

VA Loan - One-Time Close Construction Loan
FHA Loan - One-Time Close Construction Loan
See Your Credit Scores From All 3 Bureaus

Previously, most construction loans required two separate closings, as well as a re-qualification process. The One-Time Close Loan helps you avoid the extra step, saving you time and money. And with Single Close Loans available through the VA and FHA, having your new home built on your own land is easier than before!

Articles, Updates, and Guidelines
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How To Credit Qualify For An FHA Construction Loan Or A VA Construction Loan

If you're looking to finance the construction of your new home, you may be wondering if you can qualify for a VA or FHA One-Time Close construction loan. In this article, we'll go over the four things you need to credit qualify for one of these loans. Remember, VA loans are not offered to all applicants but only to those with qualifying military or uniformed service. FHA loans are offered to all who qualify for the loan.

Before You Build, Check Your Credit

If you are building a home in 2023 with a One-Time Close mortgage, you likely understand that these loans have higher credit standards than existing construction mortgages. Sometimes you need every advantage you can get to qualify for a more complex loan like a single close construction mortgage, and paying attention to the credit issues below can help.

Construction Loan Market Outlook Improving In 2023

Finance blogs are reporting interest rates falling more than three-quarters of a point since the end of October 2022, with more improvements possible down the road. Now is a very good time to consider your construction loan options, though with the caveat that we may experience a bumpy road back to lower rates and less of a seller’s market for real estate overall.
 


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Non-Allowable Properties

The following home property types are excluded from the program, meaning that you won't be able to use the One-Time Close loan for financing:

Kit Homes

Steel framing kits for metal buildings that are assembled on site.

Barndominiums

Metal structures that combine living quarters with traditional barn space.

Log Cabin Homes

Pre-cut kits for log buildings that are assembled on site.

Shipping Container Homes

A dwelling made from a steel container otherwise used for shipping

Stilt Homes

Houses raised on piles over land or a body of water.

Solar Only or Wind Only Powered Homes

Homes that are powered on-site solely by solar panels or solely by wind turbines.

Dome Homes

Homes made in the shape of a sphere utilizing shell framework.

Bermed Earth Sheltered Homes

Homes with earth (soil) against the walls, roof or buried underground.

Tiny Homes

Homes that are 600 square feet or less.

Accessory Dwelling Units

Additional living quarters that are independent of the primary dwelling.

A-Framed Houses

Building with a tall triangular roof that resembles the letter A.

The primary reason for these exclusions is that all non-regular homes are considered unique properties and hard to get comps for under VA and FHA. These homes require specialized construction techniques, making it even more important that a single builder starts and finishes a project. If the builder were to quit before a job is finished, the lender would need to step in and find a replacement. This can be more difficult than usual due to the specific nature of the work.

OneTimeClose.com is not a government agency. We do not offer or have any affiliation with loan modification, foreclosure prevention, payday loan, or short term loan services. Neither OneTimeClose.com nor its advertisers charge a fee or require anything other than a submission of qualifying information for comparison shopping ads. We do not ask users to surrender or transfer title. We do not ask users to bypass their lender. We encourage users to contact their lawyers, credit counselors, lenders, and housing counselors.

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One and Won is a registered trademark of Texcorp Mortgage Bankers, Inc.

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