Use The Right Resources For Your Construction Loan
May 17, 2023
FHA, VA, and USDA: One-Time Close Loans
Want More Information About One-Time Close Loans?
We have done extensive research on 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 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.
OneTimeClose.com 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 allows 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, including but not limited to: Kit Homes, Barndominiums, Log Cabin Homes, Shipping Container Homes, Stilt Homes, Solar (only) or Wind Powered (only) Homes, Dome Homes, Bermed Earth Sheltered Homes, Tiny Homes, Accessory Dwelling Units, or A-Framed Homes.
All known FHA/VA One-Time Close Lenders known to our company will not allow a borrower to act as their own contractor, whatsoever. There cannot be self-builds, relative builds, or employer builds.
Contact Us: Send Us Your Request – Spam Safe
Please send your email request to [email protected] which authorizes OneTimeClose.com to share your personal information with one mortgage lender licensed in your area to contact you. No SSN required • No credit check • 100% free to get started
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 are eligible veterans, 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 $1,500,000 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.
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.
Construction Loan Resources: Research Your Lenders
It does not pay to pick the first lender you find offering fair terms. You’ll want to compare various lenders offering construction loans and see who offers the best deal for your project.
Don’t treat the lender aspect of this process lightly, you could be “married” to them for some time, and you’ll want a lender you can work with over the long term.
Know Your Realistic Options
Some first-time home buyer options don’t apply when building a house rather than buying an existing one. Borrowers who buy existing construction can often use a local down payment or closing cost assistance program to lower their upfront costs.
But lenders who approve One-Time Close mortgages typically don’t allow down payment assistance; the unspoken rule informing this may be that if the borrower struggles to come up with the down payment, they may not be able to afford the construction loan realistically.
The gist here? Don’t assume such resources are available to you as a One-Time Close loan applicant like they are offered to those buying existing properties.
Home Building Resources: Local Reviews
You want to review the local online reputation of any contractor, builder, inspector, or other single-close mortgage service provider you’re considering. Many online review platforms exist, including Yelp!, Angi.com, and more.
Remember, some online service providers offer to suppress negative reputation information, so you’ll want to consider reading multiple reviews to get the correct impression of an individual service provider.
Home Building Resources: Local Recommendations
In addition to online reputation, you can get word-of-mouth recommendations from local homeowners or business owners. Have you asked a real estate agent their recommendations for a builder or inspector? What about a local insurance agent or property manager?
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.
Construction Loan Resources: Research Your Lenders
It does not pay to pick the first lender you find offering fair terms. You’ll want to compare various lenders offering construction loans and see who offers the best deal for your project.
Don’t treat the lender aspect of this process lightly, you could be “married” to them for some time, and you’ll want a lender you can work with over the long term.
Know Your Realistic Options
Some first-time home buyer options don’t apply when building a house rather than buying an existing one. Borrowers who buy existing construction can often use a local down payment or closing cost assistance program to lower their upfront costs.
But lenders who approve One-Time Close mortgages typically don’t allow down payment assistance; the unspoken rule informing this may be that if the borrower struggles to come up with the down payment, they may not be able to afford the construction loan realistically.
The gist here? Don’t assume such resources are available to you as a One-Time Close loan applicant like they are offered to those buying existing properties.
Home Building Resources: Local Reviews
You want to review the local online reputation of any contractor, builder, inspector, or other single-close mortgage service provider you’re considering. Many online review platforms exist, including Yelp!, Angi.com, and more.
Remember, some online service providers offer to suppress negative reputation information, so you’ll want to consider reading multiple reviews to get the correct impression of an individual service provider.
Home Building Resources: Local Recommendations
In addition to online reputation, you can get word-of-mouth recommendations from local homeowners or business owners. Have you asked a real estate agent their recommendations for a builder or inspector? What about a local insurance agent or property manager?
FHA, VA, and USDA: One-Time Close LoansWant More Information About One-Time Close Loans?We have done extensive research on 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 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.
OneTimeClose.com 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 allows 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, including but not limited to: Kit Homes, Barndominiums, Log Cabin Homes, Shipping Container Homes, Stilt Homes, Solar (only) or Wind Powered (only) Homes, Dome Homes, Bermed Earth Sheltered Homes, Tiny Homes, Accessory Dwelling Units, or A-Framed Homes.
All known FHA/VA One-Time Close Lenders known to our company will not allow a borrower to act as their own contractor, whatsoever. There cannot be self-builds, relative builds, or employer builds.
Contact Us: Send Us Your Request – Spam Safe
Please send your email request to [email protected] which authorizes OneTimeClose.com to share your personal information with one mortgage lender licensed in your area to contact you. No SSN required • No credit check • 100% free to get started
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 are eligible veterans, 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 $1,500,000 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
One-Time Close Construction Loans Versus Two-Close Loans
November 1, 2024There is a mortgage loan option that lets you build a house from the ground up on land you own or purchase in conjunction with the loan. The One-Time Close loan is the mortgage you want to ask the lender for to build a home from the ground up instead of buying someone else's dream home.
Build On Your Lot in Georgia with an FHA or VA Construction Loan
October 29, 2024Residents in Georgia are finding out that they can utilize these low-down payment construction programs in order to build a new home with the same underwriting guidelines and qualifications as if they were purchasing a resale. Learn more about One-Time Close construction mortgages.
One Time Close Mortgages 101
October 26, 2024The Federal Housing Administration (FHA) offers a range of mortgage loan options including the ability to build your home from the ground up. The FHA One-Time Close Construction Loan streamlines the process by combining construction financing and the FHA mortgage into a single loan.
