One-Time Close Loans | FHA and VA Construction Loans
VA and FHA One-Time Close Construction Loans

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

Facts (And A Few Fictions) About One-Time Close Loans

Facts (And A Few Fictions) About One-Time Close Loans
Building a home on your own land or on land you buy in conjunction with the mortgage is a smart move for those who want more control over the features in their home, don’t want to compete with other buyers, and may hate the negotiation process with a seller. 

An FHA or VA One-Time Close Construction Loan can be a great alternative to buying someone else’s house. What should you know about these loans before you commit?

The Government Backs FHA and VA Construction Loans

These loans are easier for a lender to approve because there is a lower risk for the lender. Your credit scores and down payment requirements are informed by the federal government’s guarantee to cover a portion of the loan if the borrower defaults. 

Your lender may have higher credit requirements for a construction loan. However, depending on your financial needs and goals, government-backed construction loans may still be competitive with their conventional equivalents.

One-Time Close Loan Myth: You Can Build A Business

FHA and VA single-close construction loans are for residential projects. You can’t build an Airbnb, a bed-and-breakfast, frat house, or other operations using a VA or FHA single-close construction loan.

One-Time Close Loan Fact: Your Lender May Only Permit Single-Unit Construction

Yes, both VA and FHA loan options include buying a home up to four units large. However, your lender may not be willing to approve a loan to build a multi-unit property. If this is your goal, ask the lender about what is possible early in the application process.

Construction Loan Fiction: Rehab And Construction Loans Are The Same

You need a different type of loan to rehab an existing property. VA and FHA home loan options include rehabilitation loan products such as the FHA 203(k), but these loans can’t be used interchangeably with One-Time Close mortgages. Your specific need will dictate the type of loan used.

Government-Backed Construction Loan Fact: Down Payment Requirements May Be Lower

When building a home with a conventional construction loan you may need to make a higher down payment. When building with an FHA or VA One-Time Close loan, your requirements may include a lower down payment unless credit issues require you to make a higher down payment as a compensating factor.

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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