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

Mortgage Payments for Your Construction Loan

Mortgage Payments for Your Construction Loan
How much will your monthly mortgage payment be for an FHA or VA One-Time Close construction loan?

These loans are meant to streamline the construction loan process by eliminating the need for a separate loan to build the home, reducing two applications, two loan approvals, and two closing dates into a single loan with one closing process and no worries about being denied for the second loan.

So with the One-Time Close loan, you don’t have to apply twice; some borrowers at this stage ask “What’s the catch?” They expect higher down payments required in exchange for the simpler loan, or they expect that they cannot build a home from scratch with a One Time Close loan as a first-time borrower.

But neither of those things are true--you can apply for a construction loan as a first-time buyer and you don’t have to make a larger down payment just because you want to build on your own lot instead of buying someone else’s property.

So how do you estimate the monthly mortgage payment on an FHA or VA construction loan?
Online mortgage calculators can help. The online mortgage calculator can help you determine an estimate of the monthly payment, how much loan you can afford, and more but the right information is needed to make the process work.

What is that information? Your proposed loan amount divided by the loan term (the number of months you will pay on the loan) is important, but you must also factor in hazard insurance, mortgage insurance premiums and other costs included in the loan such as when the borrower chooses to finance the FHA Up-Front Mortgage Insurance Premium.

Aside from principal and interest, the following expenses may affect the amount of your monthly payment with an FHA One-Time Close construction loan or its’ VA construction loan equivalent:
  • Hazard insurance
  • Property taxes
  • Mortgage insurance
  • Required special assessments
  • Payments for any secondary financing
  • Escrow requirements
It IS possible to get a realistic estimate using an online mortgage calculator. Remember that the actual amount of your expenses may vary depending on circumstances; regulatory changes, alterations in bank policy, or simple market cost fluctuations may affect the final amounts. For best results, discuss your needs and concerns with a loan officer--be sure to ask how much of these expenses (the estimated dollar amount) is considered customary when estimating your monthly payment.

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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