Building A Home: What Can Put You Over Deadline And Over Budget
June 28, 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.
Some serious issues can delay a One-Time Close Construction Loan and the completion of your project, putting you over deadline and even over budget.
This article isn’t about the obvious issues like not applying for more credit after you’ve applied for a mortgage or avoiding a significant change in FICO scores after initial loan approval. Yes, those problems can delay your loan.
But there are issues associated more directly with the construction itself that could delay your completion and ability to move into the new house.
How Long Does It Take To Get A Permit?
Some states have no problem processing building permits, but if you live in a larger housing market like California, those processing times can be a major issue.
Much depends on your market, so you want to ask in advance how long it takes to get your permits. Remember that your lender won’t allow work to begin without the proper paperwork.
Supply Chain Delays Can Change Your Project Deadlines
If the materials you want to be used in the construction of your home are on backorder, you may experience a delay in the completion of the project. Since the pandemic, supply chain problems have been a severe issue for some.
COVID-19 affected the manufacture and distribution of certain essential materials, supplies, and electronics. Supply chain delays could be a factor in your project, depending on the circumstances.
Installation Issues Due To Lack Of Communication
Some who have had homes built from the ground up regret not being present for some types of installs or not communicating their desires more clearly to the builder. If you have features or fixtures you want in a specific way, be sure to be very clear with the contractor.
If you disagree with a contractor’s decision to place a feature and want it relocated, this may add time to your project. Make sure your builder knows what you want.
If you cannot be present for a crucial installation, be VERY specific with the builder about what you want and where you want it.
Otherwise, they may feel compelled to choose for you, and if you don’t like their choices, the repair and repositioning or other added work could push both your deadlines and your budget.
Budget Overruns
Do you have a lot of room in your budget for contingencies? Or are you pushing the limits of what you can reasonably afford? Beware of creeping costs.
Will you decide on the pricier option in one area but forget to address the change in the budget in others? Be mindful of the spending fluctuations you agree to along the way and ensure you aren’t pushing your budget too hard.
This article isn’t about the obvious issues like not applying for more credit after you’ve applied for a mortgage or avoiding a significant change in FICO scores after initial loan approval. Yes, those problems can delay your loan.
But there are issues associated more directly with the construction itself that could delay your completion and ability to move into the new house.
How Long Does It Take To Get A Permit?
Some states have no problem processing building permits, but if you live in a larger housing market like California, those processing times can be a major issue.
Much depends on your market, so you want to ask in advance how long it takes to get your permits. Remember that your lender won’t allow work to begin without the proper paperwork.
Supply Chain Delays Can Change Your Project Deadlines
If the materials you want to be used in the construction of your home are on backorder, you may experience a delay in the completion of the project. Since the pandemic, supply chain problems have been a severe issue for some.
COVID-19 affected the manufacture and distribution of certain essential materials, supplies, and electronics. Supply chain delays could be a factor in your project, depending on the circumstances.
Installation Issues Due To Lack Of Communication
Some who have had homes built from the ground up regret not being present for some types of installs or not communicating their desires more clearly to the builder. If you have features or fixtures you want in a specific way, be sure to be very clear with the contractor.
If you disagree with a contractor’s decision to place a feature and want it relocated, this may add time to your project. Make sure your builder knows what you want.
If you cannot be present for a crucial installation, be VERY specific with the builder about what you want and where you want it.
Otherwise, they may feel compelled to choose for you, and if you don’t like their choices, the repair and repositioning or other added work could push both your deadlines and your budget.
Budget Overruns
Do you have a lot of room in your budget for contingencies? Or are you pushing the limits of what you can reasonably afford? Beware of creeping costs.
Will you decide on the pricier option in one area but forget to address the change in the budget in others? Be mindful of the spending fluctuations you agree to along the way and ensure you aren’t pushing your budget too hard.
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
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Build On Your Lot in Illinois using an FHA or VA Construction Loan
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Using a One-Time Close Residential Construction Loan to Build a Residence
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