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

Construction Loan Scams

Construction Loan Scams
If you want to build your home from the ground up using a One-Time Close construction loan, you should be aware of home loan scams that could affect your transaction.

Some mortgage scams are attempts to get the buyer to wire money to a third party in direct contradiction to the arrangements you and the lender have worked out ahead of time.

Buyers who purchase existing construction are susceptible to wire transfer fraud attempts from third parties trying to do this, but construction loan scams are possible, too.

What To Look For

What is the most important thing to know about these con games? Your scammer does NOT want you communicating directly with your loan officer, your contractors, or anyone else who can verify that you are being scammed.

Even if the communication looks 100% legitimate and comes from the “proper” email or text sources, you should NEVER obey such instructions. You should instead call your lender or contractor directly (not using any contact information provided in the scam email) at a centralized number.

NEVER agree to a procedure different than what you and the lender agreed to. This is one of the hallmarks of a scam. As mentioned above, speak personally to your loan officer DIRECTLY using the bank’s central number. We can’t emphasize this enough.

Wire Transfer Scams and Single-Close Construction Loans

There are many ways a scammer might approach you during a construction loan’s arc between application and project completion. Building a home is more complicated than buying one, and scammers count on that confusion to trick you into doing what they want.

And what they want is for you to wire them money. You could be provided via email, text, social media, snail mail or other means with a bogus invoice for contractor work. 

You could be approached for money associated with the costs of a compliance inspection or for a flood zone determination. Or you may be informed of a so-called “accounting mistake” requiring fast payment to avoid your construction project grinding to a halt.

No matter what the so-called issue is, the communications always build in a bogus sense of urgency, telling you there may be dire consequences of some kind if you do not ACT NOW.

Common Features Of Mortgage Scams To Watch For
  • Urgent last-minute instructions.
  • Breathless copy telling you that you “may lose your home” if you don’t comply with the instructions.
  • Bad grammar, spelling, and other evidence the message originates from “offshore.”
  • Instructions telling you to deviate from the original plan you and the lender worked out
  • Requirement of a wire transfer with no other payment options offered, or suspicious payments such as gift cards or even cash.
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 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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