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.

Buying Land To Build Your House On

Using an FHA or VA One-Time Close construction loan to build a house from the ground up often means buying land to build the house. 

If you don’t have your own land at application time, you can discuss adding loan funds to do so when the time is right. But be sure to ask the lender how much the land purchase will increase the monthly mortgage payment amount.

Local Permits and Fees To Build The House

When you build or remodel, you are typically required to have the appropriate permits. Paying for a permit means you agree to build the house to state and local building code requirements and compliance inspections may be required once the work is done. 

Construction Loan Compliance Inspections

Once you finish building, the local code authority may require you to have a code compliance inspection. Such inspections are different from appraisals or home inspections, and you will need to budget and save for all three to be fully prepared for the loan and the construction phase of it.

Demolition Costs Associated With Buying Land

Did you buy a plot of land with a structure on it that needs to be removed? Is there a house on the land which needs to be torn down? 

What about outbuildings or accessory dwelling units? All of these may require outside help to get rid of, and the costs associated with such work should be included in your overall budget for the construction loan.

Living Expenses During The Construction Phase

You won’t be able to occupy the home until the construction phase of the loan is complete. Some already own homes to live in and may keep those properties until the project is finished. 

But not everyone has the luxury of doing so, and if you need to continue paying rent in the meantime, be sure to consider your living expenses as they relate to your home loan costs in the construction phase of the loan.

You may have already thought of this if you are already paying rent or a monthly mortgage payment. But what about those who want to buy a home but currently live with parents or roommates? It’s an expense you’ll want to include in your planning in any circumstance.

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. 

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 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 OneTimeClose.com 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.