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

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

How One-Time Close Loans Differ From Existing Construction Loans

How One-Time Close Loans Differ From Existing Construction Loans
The FHA One-Time Close construction loan, the VA equivalent of it, USDA construction loans, and even conventional construction mortgages all have features that make them different than existing construction loans.

How do they differ? You may not be ready to commit to a mortgage at the time you read this, but if you ARE reading this you are likely making plans, comparing prices, and thinking about what it takes to save up for the down payment.
Construction loans are great for those who want a home more customized (or customizable at a later date) than existing properties. What do you need to know about them?

One-Time Close Construction Loans Take More Time

And for many, that extra time is WORTH IT, Don’t be in a hurry to occupy the home you want to build with your loan; you need time to get the right floor plans, hire the right contractors, and get the job done. Permits take longer than you think they do depending on the housing market; don’t make the mistake of giving yourself an unreasonable timeline.

Construction Loans Are Available for First-Time Buyers

Yes, you CAN qualify for a construction loan to build on your own lot even as a first-time home buyer. Some lenders require slightly higher FICO scores for these mortgages. Be sure to ask a lender what you will need to qualify for a construction loan compared to an existing construction mortgage.

Construction Loans May Have Certain Limits Established by the Lender

We are not talking about loan limits here, but rather limits on the type of property you can build. Some financial institutions don’t approve construction loans for multi-unit housing, for example. You may also find that a construction loan such as an FHA or VA loan may not provide funds for luxury features like a swimming pool. Ask your loan officer.

Your Home Loan Payments Begin Later

Yes, your construction loan payments may start later than existing construction mortgage payments. If you apply for a 30-year loan in the last months of 2022, and the home is not completed until early 2023, your mortgage payments may begin then.
Does that sound good? It CAN be good for some, but remember that you are still required to fully pay off the loan within the 30 year loan term no matter when your payments actually begin.
Ask your lender how that will affect your monthly mortgage payment--will you pay more each month to make up for the months you were not paying because the construction was still underway? Or do you make a balloon payment at the end of the loan. Different types of home loan (conventional, VA, FHA, USDA) will have different rules in this area. Be sure to ask.

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. 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: 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 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
OTC articles
Expect The Unexpected With Your One-Time Close Loan

If you want to build a home from the ground up on land you own or buy in conjunction with the loan, you need a One-Time Close construction loan. Available as a VA or FHA option, the single-close construction loan makes it possible to build a home with plans and materials you approve.

Construction Loan Terms To Remember Before You Start

There are many industry terms unfamiliar to first-time home buyers, especially those looking for a One-Time Close construction loan. Knowing some of these terms in advance can help you make better decisions in the planning stages of your single-close loan. We examine some important construction loan terms below to help you better navigate the process.

What To Know About Construction Loans Before You Apply

There are a lot of myths about home loans in general and a few pervasive ones about construction loans worth dispelling. What do you need to know when you commit to building your own home from the ground up?

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