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

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.

Learn About the 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
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?

Construction Loan Approval Rules For Employment And Income

If you want to build your own home, it’s good to know that doing so means taking some extra time to work on your credit and employment history before applying. Construction loans are harder to qualify for with income and employment for some, what do you need to know before you start the process? We examine some key points.

Construction Loan Interest Rates For The Rest Of 2024

Many financial pundits and mortgage blogs discuss the current state of construction loan interest rates. Some of these sites make predictions, including noting that One-Time Close construction loan interest rates will likely stay around the mid-6 % range for the rest of 2024. Those hoping to build a home from the ground up this year with interest rates closer to pre-pandemic levels are likely to be disappointed. What should borrowers expect going forward? Is it smart to delay a construction loan until the Fed cuts rates again?


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