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

Considerations For Building Your Home From The Ground Up

Considerations For Building Your Home From The Ground Up
If you plan to build a home, you have multiple options to choose from, including FHA One-Time Close construction loans and the VA equivalent. These mortgages let you build a house on your own lot or on land you buy in conjunction with the loan.

What do you need to know about building a home before you commit?

How Big Do You Want To Go?

On paper VA and FHA construction loans allow funds for a property of up to four units. But your lender might restrict these loans to smaller projects. If you have ambitions to build a multi-unit property, tell the lender as early in the process as possible.

If You Don't Own Your Own Land

Many government-backed mortgage loan programs like VA and FHA single-close construction loans allow you to buy land in conjunction with the loan. You can't use the VA or FHA loan program to buy undeveloped land with no existing plans to build. You'll need to do both at once.

Down Payment Issues

Your lender may not accept down payment assistance on a construction loan. Be sure to save enough of a down payment that you won't need such help at application time.


If you need a co-borrower on your loan because you worry you won't be able to financially qualify on your own, you may not be right for a construction loan.

Not All Lenders Or Builders Are Alike

You will need to carefully screen your builders as well as the lender. Research online reputations, note any troubling reviews, and make your choices carefully.

Don't Expect To Do Your Own Labor

Most lenders won't allow you to perform your own contracting work. If you need to cut costs by acting as your own builder, it may be smart to reconsider a construction loan until you have sufficient plans for cost overruns or delays. If you are set on doing your own labor, a different type of home loan may be required.

Add-Ons To The Loan

Just because you are building a home instead of buying an existing house doesn't mean you can't apply for an add-on to the loan, such as the FHA energy efficient mortgage (EEM) option (also available with VA construction loans) allowing extra loan funds for approved energy-saving upgrades or features.

An energy efficient mortgage typically has you and the lender agreeing to a list of projects to be paid for with EEM loan funds. Like the construction loan itself, no loan funds go directly to the borrower, and you may be required to work with an energy consultant as a condition of loan approval.

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 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. 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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