Choosing The Right Place To Build Your Home
April 19, 2024
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.
Building a new home on your own means sorting out crucial details. There are builders to hire, floor plans to review, and budget concerns to work out.
And then there are the details of the home itself. Is it close enough to essential services, schools, and major highways? Is it far enough away from shopping centers and mass transit?
There are smart choices when building a home, but not all new borrowers know to ask about them. We explore some important considerations below.
What You Don’t Know Can Hurt You
If you buy land to build a home on, depending on where you buy it, you may want to ensure it’s not too close to future construction projects or shopping center developments.
Those building in more rural areas may not have these concerns, but it pays to know the state of the local area before you commit.
Is there a zoning issue that could put a shopping center too close for comfort? Is there a plan to install high-speed rail in an area near you? When shopping around for the right land to buy in conjunction with your construction project, it pays to ask these questions.
Some Land Isn’t Suitable
If you want a government-backed construction loan, such as an FHA or VA One-Time Close loan, you may find that these programs have certain guidelines to protect you.
Did you know a construction loan under the VA or FHA programs cannot be approved if too near a Coastal Barrier Region, mining operation, or high-pressure gas pipeline?
A History Of Natural Disasters?
If you read the above about Coastal Barrier Regions and assumed you might have difficulty getting a home loan approved in any known natural disaster area, you likely are not alone.
However, FHA and VA loan rules say a history of natural disasters in the area is not in and of itself a barrier to loan approval if certain conditions are met.
Generally speaking, when a borrower agrees to carry the right kind of natural disaster insurance, there may not be an issue with One-Time Close approval. Much depends on circumstances so you’ll need to work with a participating lender to learn more.
Title Concerns
Know before you build! If you need to buy land to build your dream home on, a title search on that land should be considered a logical part of the process. You should know the property is free and clear and does not have liens or other claims.
And then there are the details of the home itself. Is it close enough to essential services, schools, and major highways? Is it far enough away from shopping centers and mass transit?
There are smart choices when building a home, but not all new borrowers know to ask about them. We explore some important considerations below.
What You Don’t Know Can Hurt You
If you buy land to build a home on, depending on where you buy it, you may want to ensure it’s not too close to future construction projects or shopping center developments.
Those building in more rural areas may not have these concerns, but it pays to know the state of the local area before you commit.
Is there a zoning issue that could put a shopping center too close for comfort? Is there a plan to install high-speed rail in an area near you? When shopping around for the right land to buy in conjunction with your construction project, it pays to ask these questions.
Some Land Isn’t Suitable
If you want a government-backed construction loan, such as an FHA or VA One-Time Close loan, you may find that these programs have certain guidelines to protect you.
Did you know a construction loan under the VA or FHA programs cannot be approved if too near a Coastal Barrier Region, mining operation, or high-pressure gas pipeline?
A History Of Natural Disasters?
If you read the above about Coastal Barrier Regions and assumed you might have difficulty getting a home loan approved in any known natural disaster area, you likely are not alone.
However, FHA and VA loan rules say a history of natural disasters in the area is not in and of itself a barrier to loan approval if certain conditions are met.
Generally speaking, when a borrower agrees to carry the right kind of natural disaster insurance, there may not be an issue with One-Time Close approval. Much depends on circumstances so you’ll need to work with a participating lender to learn more.
Title Concerns
Know before you build! If you need to buy land to build your dream home on, a title search on that land should be considered a logical part of the process. You should know the property is free and clear and does not have liens or other claims.
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
One-Time Close Construction Loan Issues: Weather Delays
October 22, 2024One-Time Close construction projects are subject to many variables that can change their timelines. Weather is a particularly unpredictable factor to consider, and depending on where you live, issues may range from snow and rain to extreme temperatures. Weather is a variable that can cause construction disruptions, delays, potentially increased costs, and frustration for borrowers. Knowing that upfront can help, especially when it is time to plan your contingency fund.
Build On Your Lot in Illinois using an FHA or VA Construction Loan
October 21, 2024There is a FHA and VA government backed One-Time Close construction to permanent loan program available in Illinois for qualified applicants who are looking to build a brand-new home versus a resale.
Using a One-Time Close Residential Construction Loan to Build a Residence
October 15, 2024Building a new home can be exciting. It can also be a complex process, and it pays to understand as much of it as possible while planning your home loan. If you want to use a one-time close residential construction loan to build your home from the ground up, there are three things to consider.
