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

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

Loan Options For Building Your Own House On Your Own Lot

Loan Options For Building Your Own House On Your Own Lot
Why choose an FHA or VA One-Time Close Construction Loan over a conventional equivalent? There are good reasons to consider doing so. 

Borrowers experienced with government-backed mortgages know that the interest rates can be more competitive than conventional loans thanks to the government’s guarantee of these loans, so why don’t more people explore their options under VA and FHA single-family construction loan options?

VA Loans Aren’t Available To Everyone

VA loans are for those who qualify for the program with a minimum amount of time served in uniform. 

Those eligible can apply for a construction loan with no down payment, a huge advantage for anyone who served enough time in the Air Force, Army, Navy, Space Force, Marine Corps, or Coast Guard. 

Others who served in the “uniformed services,” such as NOAA or the U.S. Public Health Service, may also qualify. If you aren’t sure you qualify, ask a lender to help you get your VA Certificate of Eligibility or learn why you don’t qualify.

FHA Single-Close Construction Loans: Fewer Restrictions And Low Down Payments

Compare the FHA construction loan options to VA construction loans, and you’ll find there are fewer restrictions on basic eligibility; you do not have to be a military member, you do not have to have a financial need, and you do not, contrary to popular misconceptions, have to be a first-time home buyer.

FHA loans require you to credit qualify and make a minimum 3.5% down payment on your construction loan. 

They have no penalty for early payoff of the loan, there are certain restrictions on what the lender can charge you in terms of fees, and you can refinance using several different lower-interest FHA refi options.

Conventional Loan Options

The FHA and VA loan options are competitive with conventional single-close construction loans for various reasons. 

One is that a conventional lender can legally charge you a fee to pay off the loan early through refinancing or paying more than the minimum. Your lender may require higher FICO scores for a conventional construction loan than a government-backed mortgage. 

There are some advantages to construction loans offered by a conventional lender; the ability to apply for a home equity line of credit down the line is one.

The ability to apply for a home equity loan (different than a line of credit) is another. FHA and VA loans feature a cash-out refinance option but do not offer HELOCs as part of those programs.

Want More Information About One-Time Close Loans?

We have extensively researched the FHA (Federal Housing Administration) and the VA (Department of Veterans Affairs) 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 with the guidelines for their products. We can connect you with mortgage loan officers who work for lenders who know the product well and consistently provide 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 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 and VA One-Time Close Construction Program only allow 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. 

Contact Us:  Send Us Your Request – Spam Safe 

Please send your email request to [email protected] which authorizes to share your personal information with one 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 is an eligible veteran, 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 VA lenders will go up to $1,500,000 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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