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

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VA Loan - One-Time Close Construction Loan
FHA Loan - One-Time Close Construction Loan

When Are You Ready To Build Your Home?

When Are You Ready To Build Your Home?
If you are building a home using a single-close mortgage, you likely already know the process is more complex than buying an existing home. That shouldn’t stop you from building the house you want, but there are critical mistakes to avoid when planning your home. Do you know what they are? How do you know if you are ready to build your home?

Not Doing Enough Home-Building Homework

You might miss important details if you skimp on the research phase of your house-building journey. You want to know how long it takes to get building permits in your housing market, whether the area is known for a specific type of natural disaster or bad weather, and what the area's future might be.

For example, you likely do not want to build your new home near a zone designated as major shopping center development. The same is true for buying land or building on it when that land is near a major airport expansion project. 

What is the water delivery system in your market--are there serious lead water pipe issues, such as in Chicago? Or has the community already mitigated the risks of old and unsustainable infrastructure? Know the area before you commit to building there.

Not Researching Your Contractors

Many agree that “the biggest mistake you can make” when using a One-Time Close construction loan is not vetting your contractors. Do you know the online and local reputations for your custom builder? Plumber? Pest control companies?

Read the online references, review the company’s portfolio, and try to be as pragmatic as possible about the construction loan's costs, deadlines, and other features.

Be Pragmatic

You’ll want to be ruthless about the funding of your construction project, including making plans for cost overruns, delays, and missed deadlines.

It is unsafe to assume the project will go 100% as scheduled or planned. Expect delays and anticipate them by saving some extra funds for contingencies. You never know when the weather, local politics, or even a global pandemic might interfere with your plans. Expect delays.

Don’t Act Too Quickly

Being too eager to move forward with the process can be a mistake if you have not adequately prepared your credit, saved up enough for a down payment, etc.

Don’t move forward with the loan if you aren’t sure about whether you can afford the money down, the cash needed for escrow, insurance, etc. Save enough to cover your down payment and other expenses, don’t rush into the loan.

Want More Information About One-Time Close Loans?

We have extensively researched the FHA (Federal Housing Administration) and the VA (Department of Veterans Affairs) One-Time Close Construction loan programs.

We have spoken directly to licensed lenders that originate these residential loan types in most states, and each company has supplied us with the guidelines for their products.

We can connect you with mortgage loan officers who work for lenders that know the product well and have consistently provided quality service.

If you are interested in being contacted by a licensed lender in your area, please send responses to the questions below. All information is treated confidentially. provides information and connects consumers to qualified One-Time Close lenders to raise awareness about this loan product and to help consumers receive higher-quality service.

We are not paid for endorsing or recommending the lenders or loan originators and do not otherwise benefit from doing so. Consumers should shop for mortgage services and compare their options before agreeing to proceed. 

Please note that investor guidelines for the FHA and VA One-Time Close Construction Program only allow for single-family dwellings (1 unit) – and NOT for multi-family units (no duplexes, triplexes or fourplexes).

In addition, the following homes/building styles are not allowed under these programs: Kit Homes, Barndominiums, Log Cabin Homes, Shipping Container Homes, Stilt Homes, Solar (only) or Wind Powered (only) Homes. 

Contact Us:  Send Us Your Request – Spam Safe 

Please send your email request to [email protected] which authorizes to share your personal information with one mortgage lender licensed in your area to contact you.
1.  Send your first and last name, e-mail address, and contact telephone number.
2.  Tell us the city and state of the proposed property.
3.  Tell us your and/or the Co-borrower’s credit profile: Excellent – (680+), Good - (640-679), Fair – (620-639), or Poor- (Below 620). 620 is the minimum qualifying credit score for this product. 
4.  Are you or your spouse (Co-borrower) eligible veterans? If either of you is an eligible veteran, down payments as low as $0 may be available up to the maximum amount your debt-to-income ratio per VA will allow – there are no maximum loan amounts as per VA guidelines.

Most lenders will go up to $1,000,000 and review higher loan amounts on a case-by-case basis. If not, the FHA down payment is 3.5% up to the maximum FHA lending limit for your county.
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Articles, Updates, and Guidelines
OTC articles
One-Time Close Expenses You Should Plan For

If you want to build a home from the ground up, there are costs to think about as early as possible in the planning stages. Anticipate these expenses for best results when building your house with a One-Time Close construction mortgage.

Issues To Consider Before Applying For Your Construction Loan

Part of the process may seem confusing if you have never built a home with a Single-Close construction loan. For example, why do some lender websites tell you to find a builder before you apply for the loan, only to tell you later the lender may need to approve your contractor?

Use The Right Resources For Your Construction Loan

Do you want to build a home with a One-Time Close mortgage? Are you new to the home loan process? If so, there are resources you should use to make the process easier and less stressful. Building a home instead of buying existing construction can be more challenging, but using the right tools, you can manage those challenges along the way.

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