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

With a One-Time Close construction loan you'll only need to qualify once and pay a single set of closing costs.

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

Build a Home on Your Own Lot

The One-Time Close Loan is a mortgage program that finances the lot purchase (if necessary), the construction and permanent loan of a new home, all wrapped up in a single mortgage with a single closing. That's why it's called a "One-Time Close."

If you've decided to have your new home built from scratch, you might be wondering how to finance the construction and purchase. Previously, your only option would have been to secure a construction loan and then applying again for a permanent mortgage. You would have two closings, which means paying two sets of closing costs and having to re-qualify for the second loan once construction is complete.

The One-Time Close Loan, also known as a Single Close Loan, combines this process with a construction-to-permanent mortgage. You need only qualify once and pay a single set of closing costs. Your fixed-interest rate is locked in and the entire loan is in place before construction on your new home begins. Payment is only due after construction is complete when the loan automatically converts to a permanent mortgage.

Apply Now for Your One-Time Close Constuction Loan
"Most construction loans require two separate closings, but the One-Time Close combines it all into one, cohesive mortgage, saving you time and money!"

Who Is This Loan For?

Beaver talks about One-Time Close loansHomebuyers who are having trouble finding their dream home might decide it's not the right time for them to buy. After all, why go through the stress of a mortgage process for a home that you're just settling for? Well, maybe you don't have to! Maybe you can have the home you want - down to all the details and specifications - built from the ground up, with your own specifications. The One-Time Close loan can make that process a little easier for first-time homebuyers, and our lenders can help you find skilled contractors to make that dream home a reality.

You might even own your land already! This makes things more affordable and simpler. By owning the land your future home is going to sit on, you can use any equity you have accumulated towards your down payment.

Benefits of a One-Time Close Loan

The One-Time Close loan gets you from ground-breaking to move-in with a single mortgage, which streamlines the process, significantly. But it takes the pressure off you in other ways as well. The Department of Veterans Affairs (VA) and the Federal Housing Administration (FHA) both offer a version of the Single Close loan. While each agency may have certain additional requirements, there are some aspects both share.

Similar to other loans offered by the VA and FHA, the One-Time close loan comes with low interest rates as well. Getting a VA or FHA loan also means that you won't have to put up a huge down payment before construction starts, since these agencies have low requirements for upfront payment.

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Articles, Updates, and Guidelines
OTC articles
How To Credit Qualify For An FHA Construction Loan Or A VA Construction Loan

If you're looking to finance the construction of your new home, you may be wondering if you can qualify for a VA or FHA One-Time Close construction loan. In this article, we'll go over the four things you need to credit qualify for one of these loans. Remember, VA loans are not offered to all applicants but only to those with qualifying military or uniformed service. FHA loans are offered to all who qualify for the loan.

Before You Build, Check Your Credit

If you are building a home in 2023 with a One-Time Close mortgage, you likely understand that these loans have higher credit standards than existing construction mortgages. Sometimes you need every advantage you can get to qualify for a more complex loan like a single close construction mortgage, and paying attention to the credit issues below can help.

Construction Loan Market Outlook Improving In 2023

Finance blogs are reporting interest rates falling more than three-quarters of a point since the end of October 2022, with more improvements possible down the road. Now is a very good time to consider your construction loan options, though with the caveat that we may experience a bumpy road back to lower rates and less of a seller’s market for real estate overall.
 


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