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

Building A Home: Questions Answered

Building A Home: Questions Answered
If you’re interested in building a home, you likely have some basic questions as you start the planning stages of your construction loan.

Some single-close mortgages are better for some borrowers than others. Consider the no-downpayment VA home loan option offered to those who qualify for the VA mortgage program with uniformed service.

Applying for a zero-down home loan is appealing, no matter what type of mortgage you seek. But not all are eligible for this option. 

 Many turn to FHA mortgages for a similarly consumer-friendly home loan regarding the down payment requirements and consumer protections such as no penalty for early loan payoff. 

How Do I Qualify For An FHA Construction Loan? 

Those who buy existing construction must get familiar with FHA loan requirements, such as the FICO score range for the lowest 3.5% downpayment. But if you are building a home on your own lot, you’ll also need to know your lender’s requirements above the FHA loan program rules.  

Your lender will likely have a higher FICO score range standard than the FHA loan minimums. Building a home is riskier than buying one already on the housing market, and your lender will adjust the FICO score requirements accordingly.  

Don’t expect to be approved for a construction loan if your credit scores are flirting with the lower end of the range. Work on your credit well ahead of time for the best results. 

What Are The Minimum Standards? 

In general, qualifying standards for a typical FHA loan include the following: Being in the job market for 24 months or more, having the same basic type of earnings (salary, commission, hourly, self-employment income) for 24 months or more, and you want to buy a home (a primary residence) and not an investment property.

You should also not be maxed out on your credit, such as credit cards and personal loans. Given the riskier nature of construction loans, your lender will likely require you to solidly meet these expectations, rather than “barely qualifying.”

You may find that construction loans hold the borrower to a higher standard. Using A Co-Borrower On Your Construction Loan, Some worry about credit and their ability to qualify to build a home and may feel tempted to turn to a co-borrower or cosigner.

Remember that if your credit isn’t sufficient to qualify for a construction loan, adding another borrower isn’t likely to get you closer to loan approval.

If it’s a question of having enough income to afford the loan, a co-borrower or co-signer may be helpful. But don’t expect the lender to approve a One-Time Close loan application if one borrower’s credit does not meet the lender’s standards. 

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). 

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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