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

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

Buying Land For Your Construction Loan

Buying Land For Your Construction Loan
Are you getting a One-Time Close construction loan to build a home?

If so, you may already know you can buy land with a construction loan to build the house on. And there are considerations to make when you're buying that land.

VA and FHA One-Time Close mortgages allow qualified borrowers to use the loan to purchase land, but some borrowers want to use the loan for a plot of undeveloped land with no immediate plans to build.

That is not something VA and FHA construction loans are designed to allow. You'll need specific plans to develop the land to be approved for a loan to purchase it with VA or FHA mortgages.

Zoning Is A Concern

Zoning is critical, especially when building an entire home versus renovating one using a different type of loan. If you haven't thought about that (many first-time borrowers overlook it at first), it's an area to get well-versed in.

The location of the land you want to buy may also be an issue. Check the proximity to industrial parks, highways, shopping centers, railway stations, and gas stations.

How close is too close? It's not just about personal preference.

The rules for some construction loans won't permit you to buy within a certain number of feet of a gas station, airport, high-pressure gas pipelines, or similar operations.

Check The Deed On The Land

Deed restriction issues can be tricky in the beginning if you've never dealt with them. You want to know about any special restrictions, like a maximum dwelling size or restrictions on the kinds of structures you can put on the land.

Check The Land Itself

Are there any old buildings on the property that must be taken down and disposed of? The expense for that type of job may be more than you anticipate. Know the land before you sign the loan paperwork.

Utility Issues

Does the local utility (water, power, trash removal) serve your proposed new property? What are your options if not, and how expensive would it be to use those options? These are all things you should know before agreeing to buy the land.

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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