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

- Build a Home on Your Own Lot -
VA Loan - One-Time Close Construction Loan
FHA Loan - One-Time Close Construction Loan

Use The Right Resources For Your Construction Loan

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.

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!,, 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?

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
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?

Building Your Home With Peace Of Mind

If you want to build a home from the ground up using a VA One-Time Close mortgage or an FHA One-Time Close Construction Loan, there are some things you can do to buy with greater peace of mind.

Buying Versus Building: The Appraisal Process

When you decide to build a home with an FHA One-Time Close construction loan or its’ VA single-close equivalent, you’ve chosen a more complex path to a new home than buying existing construction, but it’s a journey worth taking. How do construction loans differ from mortgages used to buy existing properties?

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