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

Homebuyers can have a brand new home built specifically for their needs, rather than settling on an older home.

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

One-Time Close Loan Benefits

Shopping for the right kind of mortgage is just as important as shopping for the right property. If you’re looking to build your home from scratch, the One-Time Close loan might be your best bet for a number of reasons.

No Additional Closing Costs

Regular construction loans require two separate closings—once for the construction itself, and again when converting into a permanent mortgage. This also means having to pay twice the amount of closing costs on both loans. The One-Time Close Loan eliminates that requirement by bundling the construction and permanent loan into one. One closing means one set of closing costs!

Can't Find a Home You Love?

Many times, buying a move-in ready home just isn't an option. There can be a number of reasons that you've been unable to find or settle on a pre-built house. The ones available in your desired area may be lacking important features, the ones you do like can be over your budget. Maybe the houses that you've seen on the market are all fixer-uppers, but you're not the handiest of people. In such cases, it might make sense to give up on finding the right house and start thinking about building the perfect home!

Apply Now for Your One-Time Close Constuction Loan
"Since your interest rate is locked in prior to your single closing, you don't have the risk of rates rising during the interim construction phase of the loan."

Designing Your Dream Home

Beaver talks about OTC benefitsWe've all had ideas of what our dream home will look like. With a Single Close loan, those dreams can be made a reality. Instead of having to deal with the previous owner's choice in carpeting until you can afford a renovation, having your new home built from scratch gives you the opportunity to make all those decisions. That much freedom can be overwhelming for some buyers, since there is an influx of ideas and decisions to be made. That's why having a knowledgeable contractor is so important. An experienced builder can help guide you to make the best choices, while still keeping the vision you have for your new home!

Fixed Interest Rates, Locked In

Another thing that doesn't change once construction is complete, is your interest rate. With a Single Close Construction Loan the permanent mortgage is closed before construction begins and your fixed interest rate is locked in, which means it's not subject to increase during the construction phase or at any point. So even if there is a fluctuation in the market during the interim period, buyers will not have to worry about higher monthly payments.

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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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