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

Build Or Renovate?

Build Or Renovate?
Do your mortgage loan options seem confusing? Home loan types and the application of those home loans have their own time frames and cost considerations.

You'll want to know the details of each option and decide whether you're right for building or buying existing real estate. Building and renovating typically cost a bit more than buying an existing home. For those not in a hurry, the options below each have their own advantages.

Who Is Right For A Construction Loan?

In a hurry to move in? Any mortgage involving contractors or renovation will have a longer time frame for accepting the keys and moving in after closing day. Buying an existing home means a shorter amount of time from start to finish, comparatively speaking.

Knowing how long a type of loan will take helps. Single-close loans to build and FHA rehabilitation loans for fixer-uppers may be good choices if you want a more customized home but don't want to commit to the full build-out.

If you don’t mind waiting a bit longer, an FHA One-Time Close construction loan is also a great option for a more customized home. 

Borrowers should not be in a hurry with these two types of home loans. Construction and renovation projects take time.

Your Financial Needs And Goals

When is a construction loan a better option? Borrowers with good FICO scores and credit history may find these loans more accessible overall.

But do your home loan needs include saving more money upfront? If so, you may find better choices than building a house on your own land.

Rehab loans are typically less risky loans for both the borrower and the lender than construction loans. Down payment requirements are typical for VA and FHA mortgages.

FICO score requirements among participating lenders may be different for rehab loans. Your experience will vary depending on the housing market and the lender.

Requirements may vary among lenders. You could find FHA and VA lenders with different qualifications for a rehab loan than a construction loan. FICO scores and related issues are subject to lender standards in addition to FHA or VA guidelines.

Shopping around for a rehab loan or single-close loan lender may earn you a better deal depending on where and how aggressively you look.

Costs And Scope Of Work

Are you planning to keep the house for a long time? Either choice, construction loan or rehab loan, may be a good option.

What about those planning to sell within a few years? In these cases, could a fixer-upper be the best choice? It all depends on variables, including how extensive the rehab work winds up needing to be.

For example, when you take out a construction loan, you are paying for a brand-new roof along with the rest of the labor. 

Purchasing a fixer-upper that includes a roof with a good amount of remaining utility is a mortgage expense you might not have to anticipate if you find the right property.

Does the fixer-upper make better financial sense than building from the foundation up? Not all borrowers will find homes with pristine roofs, but that's just one aspect to keep in mind.

A lot depends on the specific details of your transaction. You should ask each lender you compare for a version of each loan, including how the two may differ cost-wise. It can help to get the facts and figures on paper. Learn where and how your loan funds will be used to complete your dream home.

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 who 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
One-Time Close Mortgage Scams

Major lenders are publishing warnings to One-Time Close borrowers and other mortgage applicants. These warnings are about sophisticated scams designed to fool even the most security-minded borrower, and there are important steps you should take in conjunction with your One-Time Close loan officer to avoid being swindled out of your cash to close.

How Long To Wait Before You Apply For A Construction Loan

The headline of this article might make some ask, “How long must I wait to apply for a construction loan after...what?” And there are several answers you should know about. The key here is to understand loan program standards and lender requirements equally.

Build On Your Own Lot in Georgia with an FHA / VA Construction Loan

In 2024, the FHA floor in the State of GA was increased to $498,257 and the FHA ceiling was increased to  $649,750 for single-family home loans in the State of GA.  Now may be the time to start looking into building a home that suits your exact needs.  Residents 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.  

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