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

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VA Loan - One-Time Close Construction Loan
FHA Loan - One-Time Close Construction Loan

One-Time Close Loan Tips

One-Time Close Loan Tips
One-time close construction loans through the VA and FHA programs are available to any financially qualified borrower, whether they are first-time home buyers or experienced homeowners.

All VA loans have a military or uniformed service requirement, but FHA mortgages are for any financially qualified borrower. What do you need to know about these construction loans before saving for one?

Construction Loan Limitations

One-time close construction loans are intended for owner-occupiers only. This type of mortgage does not allow investment properties.

FHA and VA single-close loans require at least one borrower on the mortgage to live in the home as the primary residence once the  work is complete, and you take possession of the keys. Typically occupancy is expected within 60 days once the home is ready.

Construction Loans Take Time

There's an industry term for a house you can buy and occupy right away. It's called a “turnkey home.” You won't have the luxury of closing the deal and hiring the movers immediately with a construction loan.

Construction loans take longer to complete than their turnkey home counterparts, but the wait is well worth it for those who want more control over the type of home they get.

Construction Loan Options

Typically approved options include energy-saving appliances, solar power, and features to improve the efficiency of your house. Not approved are doing your own labor, hiring friends and family to do the work, or not using licensed and insured contractors.

One-time close loans are typically approved for single-family, single-unit properties. Building a four-bedroom home may not be possible with a single-close construction loan unless you find a lender willing to lend for such a larger project.

FHA Rehab Loan Downpayments

A VA or FHA construction loan on paper has the same FICO score requirements and downpayment options as other VA/FHA programs, which on paper means you may qualify for a downpayment as low as 3.5%. But lender standards for these loans can be higher than for purchase loans.

You'll want to come to a construction loan application with a larger downpayment and higher FICO scores.

Ask a lender about One-Time Close loan options. You should ask about VA and FHA options if you qualify for both, and it's good to learn the nuances between a fixer-upper loan and a construction loan.

Some borrowers may be better suited to buy and renovate than building from the ground up. But if you are ready for a construction loan, knowing all options open to you is good.

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.

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 VA 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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