One-Time Close Loans | FHA and VA Construction Loans
Learn all about the VA and FHA versions of the One-Time Close Loan.

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

Loan Advice for People Building Their Own Homes

Loan Advice for People Building Their Own Homes
A One-Time Close construction loan is designed to let you build a house on your own lot instead of buying an existing property. Do you want to design and build your own home using professional contractors and plans created by a professional? There are dream homes, and then there are dream homes you approve of the design for before a single nail goes into the wood.

One Time Close Loans: You CAN Build A Home Instead Of Buying One

There are multiple government-backed One-Time Close mortgages, even need-based home loans that still allow you to build a home from the ground up. The need-based construction loans come via the USDA home loan program, but two other government backed construction loans are NOT need-based. 

VA construction loans are offered to veterans, currently serving military members, and certain surviving spouses. These construction loans feature zero down payment and no VA-required mortgage insurance. They are perfect for military families, retirees, and anyone else who qualifies for the loan and wants to build a home.

Compare Costs And Don’t Assume Building Is Out Of Your Price Range

It's easy to assume that building a home will cost you more money than buying an existing construction property. But what kind of home do you need? Are you building a house to start a family in? Or are you building a home that you want to retire in?

Construction loans allow you to have a say in the design of the property, and "going green" is a concern for many. One advantage you have in building instead of buying? 

Knowing how energy efficient and environmentally friendly your new home is based on what you decide on the design. Knowing that you will save money on your utilities even during the earliest days of your occupancy is not just comforting, but also a big help for some budgets.

Construction Loans Aren’t Just For “Certain” Home Buyers

Do you think you won’t qualify for an FHA construction loan or a VA construction loan because you are not a first-time home buyer? This is not true.

FHA credit score requirements state FICO scores 500 or above typically qualify under FHA guidelines. FICO score ranges between 500 and 579 technically qualify for FHA home loans at a higher down payment (10%). 

FHA loan standards say FICO scores at 580 or higher qualify for the lowest down payment under FHA rules. However, lender standards also apply, so be sure to ask your loan officer. Construction loans may feature different lender standards than others. But FICO score requirements are just part of the loan approval picture--ask your loan officer what makes an ideal applicant for a construction loan.

Want More Information About One-Time Close Loans?

We have done extensive research on the FHA (Federal Housing Administration), the VA (Department of Veterans Affairs) and the USDA (United States Department of Agriculture) 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 in an effort 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, VA and USDA 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.

Your email to [email protected] authorizes to share your personal information with a 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 $750,000 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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Before You Apply: Four One-Time Close Loan Tips

What do you need to know about One-Time Close mortgages before you apply for one? There are some issues to be aware of that can save you time and frustration--knowing before you start filling out application forms is a big help!

Construction Loans for New Borrowers

Did you know that even as a first time borrower, you may be eligible for a One-Time Close construction loan that allows the borrower to build a home on their own lot rather than buying an existing house?

One-Time Close Construction Loans for Veterans

Veterans have multiple options when it comes to deciding which type of One-Time Close construction loan to choose from. Naturally, any veteran who has the entitlement to use a VA mortgage for this loan would choose to do so based on the zero down home loan option all by itself.

-- Find More Articles in the OTC Library -- is not a government agency. We do not offer or have any affiliation with loan modification, foreclosure prevention, payday loan, or short term loan services. Neither nor its advertisers charge a fee or require anything other than a submission of qualifying information for comparison shopping ads. We do not ask users to surrender or transfer title. We do not ask users to bypass their lender. We encourage users to contact their lawyers, credit counselors, lenders, and housing counselors.

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