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

With a One-Time Close loan you cannot act as your own builder. Let us help you find the best builder to make your dream home a reality!

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

Finding the Right Home Builder

Finding the right builder can be a challenge, especially for first-time buyers who don't know where to start. That's where we can help! Our lenders have created relationships with many contractors who are experienced in the One-Time Close process. They can help get you in touch with knowledgeable contractors who are not only familiar with this particular mortgage process, but can also help guide you to make the best choices, while keeping the vision you have for your new home!

However, if you're a homebuyer planning to find and employ your own contractor, it's important that you know the guidelines every builder must meet for FHA, VA, or USDA Single Close Loans.

Apply Now for Your One-Time Close Constuction Loan
"As a homebuyer, you need to find and employ a contractor who meets the requirements of the FHA, VA, or USDA lenders."

Do I Need to Hire a Builder?

Beaver talks about finding your builderFirst things first- you cannot act as your own builder, whether or not you have the experience. Nor can you be responsible for hiring any sub-contractors. The builder you select must be a separate party who acts as the general contractor or construction coordinator, meaning he is responsible for "turnkey" completion of the property and all site improvements. You cannot hire a contractor you are related to, either!

Note: Borrowers should know that while FHA and VA loan rules permit the borrower to act as their own builder, lender standards still apply. Seller, borrower, and/or family members cannot act as contractor or complete any work on the home. Just to be clear, you must use the licensed/approved builder from start-to-finish and cannot deviate from the plans whatsoever.

Connecting the Builder and the Lender

Any builder you select needs to be registered with your lender. While the guidelines may differ depending on the lender, your builder will typically need to send in certain documents to gain authorization, such as:

  • Complete Builder/Retailer Application package provided by you loan officer
  • Builder/Retailer State License
  • Certificate of insurance for inland marine coverage, or builder's risk/course of construction insurance will be required on every loan
  • Certificate of insurance for General Liability and Workers Compensation (or letter explaining why it is not required)
  • For site-built homes: 2 years federal tax returns and year-to-date profit/loss statement, current balance sheet or personal financial statement, ande executive summary with overview of experience and history on company and principal
  • For USDA acceptance, complete authorization for background check and credit check for personal and business
  • For VA approval, builders/retailers will need to be registered with the VA
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Articles, Updates, and Guidelines
OTC articles
VA One-Time Close Advantages for Veterans, Military Retirees, Active Duty

There are many advantages to building instead of buying an existing home and a lot of those advantages are as much about being able to approve the design of your home and making sure it meets your needs and goals before the ground even gets broken on the construction site.

The One-Time Close Construction Loan Process

What do buyers need to know about the One-Time Close mortgage loan process? This type of home loan is perfect for those who want to take their time to build a home to their specifications on their own lot or on land purchased in conjunction for the construction project.

What You Need to Know About VA Construction Loans

Comparatively speaking, buying an existing home is a faster process than building on your own land. But a VA construction mortgage gives you the ability to approve the design for your home, which makes the wait worth it for many borrowers. What do you need to know about this process?


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