Screening Your Custom Builder
July 12, 2023
FHA, VA, and USDA: One-Time Close Loans
Want More Information About One-Time Close Loans?
We have done extensive research on 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 the guidelines for their products. We can connect you with mortgage loan officers who work for lenders that know the product well and have consistently provided 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.
OneTimeClose.com 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 allows 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, including but not limited to: Kit Homes, Barndominiums, Log Cabin Homes, Shipping Container Homes, Stilt Homes, Solar (only) or Wind Powered (only) Homes, Dome Homes, Bermed Earth Sheltered Homes, Tiny Homes, Accessory Dwelling Units, or A-Framed Homes.
All known FHA/VA One-Time Close Lenders known to our company will not allow a borrower to act as their own contractor, whatsoever. There cannot be self-builds, relative builds, or employer builds.
Contact Us: Send Us Your Request – Spam Safe
Please send your email request to [email protected] which authorizes OneTimeClose.com to share your personal information with one mortgage lender licensed in your area to contact you. No SSN required • No credit check • 100% free to get started
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 are eligible veterans, 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 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.
If you choose to build a house from the ground up using a One-Time Close Construction Loan, you’ll need to find a professional contractor to do the work. FHA and VA single-close lenders typically require you to hire a licensed professional to do the work, and it’s necessary to pick a contractor from your local pool of professionals.
But how do people screen these service providers to find a good, reputable builder?
If you’ve ever checked out product reviews online, you know that reading those reviews involves sorting the fake reviews out from the reason ones. Fortunately, there are ways to spot fake reviews and telltale signs of legit reviews.
Reading Customer Reviews Of Your Home Builder
It pays to research the reputation of the builders you are considering. It pays to shop around, and it’s never a smart idea to look at only one or two options.
No matter how many builders you screen, count the reviews they have gotten.
Also relevant? How many of them are positive, and how many are not? What’s the ratio? Does it seem suspicious or overly optimistic?
Some believe consumers are less inclined to write positive reviews and more are inclined to write negative ones. A builder with zero neutral or negative reviews may be either a VERY customer service-oriented contractor, OR...they may be padding out their review pages with bogus praise.
It’s smart to consider the date of the most negative review. Is it fairly recent, or has it been a while? The older the last negative entry, the better.
Reviews To Ignore
Does the writer of the review use excessively positive language? Does the review read like an advertisement for the company? What about positive reviews with no details in them? These can all be warning signs.
If you can’t find any specific details about the quality of service, compare that review with a builder with more specific, detailed reviews.
More Detail = More Honest Review?
In the same way, you can ask, “What color is the house?” and get three different answers. A review works in much the same way. Some might describe a barn as being painted red; others will say it is crimson, and some might say it’s maroon. Reviews work the same way.
Some will fixate on the builder’s timeliness, others on the level of communication, and some others may review the process from the perspective of someone clueless about how it all works but who liked how the contractor does business overall.
You’ll need to read many reviews (15 or more is best) to get a reasonable picture of the builder’s online reputation.
But how do people screen these service providers to find a good, reputable builder?
If you’ve ever checked out product reviews online, you know that reading those reviews involves sorting the fake reviews out from the reason ones. Fortunately, there are ways to spot fake reviews and telltale signs of legit reviews.
Reading Customer Reviews Of Your Home Builder
It pays to research the reputation of the builders you are considering. It pays to shop around, and it’s never a smart idea to look at only one or two options.
No matter how many builders you screen, count the reviews they have gotten.
Also relevant? How many of them are positive, and how many are not? What’s the ratio? Does it seem suspicious or overly optimistic?
Some believe consumers are less inclined to write positive reviews and more are inclined to write negative ones. A builder with zero neutral or negative reviews may be either a VERY customer service-oriented contractor, OR...they may be padding out their review pages with bogus praise.
It’s smart to consider the date of the most negative review. Is it fairly recent, or has it been a while? The older the last negative entry, the better.
Reviews To Ignore
Does the writer of the review use excessively positive language? Does the review read like an advertisement for the company? What about positive reviews with no details in them? These can all be warning signs.
If you can’t find any specific details about the quality of service, compare that review with a builder with more specific, detailed reviews.
More Detail = More Honest Review?
In the same way, you can ask, “What color is the house?” and get three different answers. A review works in much the same way. Some might describe a barn as being painted red; others will say it is crimson, and some might say it’s maroon. Reviews work the same way.
Some will fixate on the builder’s timeliness, others on the level of communication, and some others may review the process from the perspective of someone clueless about how it all works but who liked how the contractor does business overall.
You’ll need to read many reviews (15 or more is best) to get a reasonable picture of the builder’s online reputation.
FHA, VA, and USDA: One-Time Close LoansWant More Information About One-Time Close Loans?We have done extensive research on 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 the guidelines for their products. We can connect you with mortgage loan officers who work for lenders that know the product well and have consistently provided 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.
OneTimeClose.com 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 allows 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, including but not limited to: Kit Homes, Barndominiums, Log Cabin Homes, Shipping Container Homes, Stilt Homes, Solar (only) or Wind Powered (only) Homes, Dome Homes, Bermed Earth Sheltered Homes, Tiny Homes, Accessory Dwelling Units, or A-Framed Homes.
All known FHA/VA One-Time Close Lenders known to our company will not allow a borrower to act as their own contractor, whatsoever. There cannot be self-builds, relative builds, or employer builds.
Contact Us: Send Us Your Request – Spam Safe
Please send your email request to [email protected] which authorizes OneTimeClose.com to share your personal information with one mortgage lender licensed in your area to contact you. No SSN required • No credit check • 100% free to get started
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 are eligible veterans, 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 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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Articles, Updates, and Guidelines
FHA Update New Construction Inspection Rules
October 12, 2024In 2020, the FHA and HUD announced pending changes to the FHA Single-Family Home Loan Lender's Handbook, HUD 4000.1. This was due to policy alterations in 2018 and 2019 which required the FHA and HUD to overhaul portions of HUD 4000.1 to accommodate the modified rules.
Build On Your Lot in Texas with an FHA or VA Construction Loan
October 10, 2024Texas residents are finding out that they can utilize these low One-Time Close down payment programs in order to build a new home with the same underwriting guidelines and qualifications as if they were purchasing a resale. Now may be the time to start looking into building a home that suits your exact needs. Learn more about the One-Time Close construction mortgage.
Using Escrow For Your Construction Loan
October 7, 2024If you have started talking to construction lenders, escrow is likely a term you have encountered in your discussions. However, some aren't sure what escrow is or why it is necessary. Escrow is basically an account used in conjunction with an agreement between you and the lender.
