Learn About One-Time Close 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.
PDF Download: One-Time Close 101
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.
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, FHA and USDA, having your new home built on your own land is easier than before!
May 22, 2021If you want to build your home instead of buying someone else’s house, there is a type of construction loan that can help. The One-Time Close construction loan eliminates the need for a second loan application and approval process compared to some other types of construction loan.
May 12, 2021If you want to build a home on your own lot instead of buying an existing house, the FHA One-Time Close construction mortgage is an option to consider. FHA construction loans feature the same low down payment requirements (3.5% for qualified borrowers) as any other FHA mortgage.
April 25, 2021The most important thing to know about VA One-Time Close construction loans is that unless you are either an eligible veteran with qualifying military service or a qualifying surviving spouse of a veteran who has died as a result of military service.
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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 or Wind Powered Homes
Homes that are powered on-site by wind turbines or solar panels.
The primary reason for these exclusions is that all non-regular homes are considered unique properties and hard to get comps for under VA, FHA and USDA guidelines. 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.
