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

Buy Or Build: Home Loan Options For First-Time House Hunters

Buy Or Build: Home Loan Options For First-Time House Hunters
Are you a first-time home buyer? Some assume that just one type of home loan is offered and that getting the right home means filling out a generic credit application. 

But the reality is that depending on whether you want to build or buy, there are specific mortgage programs, procedures, and terms you should know about before you commit.

We compare some of the most popular home loan options below.

Mortgages For Existing Suburban Homes

When a borrower wants to buy someone else’s house, an FHA 203(b) purchase loan or a VA equivalent are two examples of government-backed home loans to choose from.

These types of mortgages let owner-occupiers buy an existing house that meets VA or FHA guidelines and state standards. These properties are typically up to code and state requirements or can be modified based on an appraiser’s report to meet those standards.

Home Loans For Renovation

Some don’t want a brand new home. They seek a fixer-upper house to improve and move into. 

Options are available for these borrowers, including the FHA 203(k) rehabilitation loan, designed to help borrowers buy and renovate or refinance and renovate property that can’t pass an appraisal. The house must be made compliant as a condition of home loan approval.

VA and FHA One-Time Close Construction Loans

VA and FHA One-Time Close construction mortgages are the best choices for those who don’t want to move into someone else’s dream home and want more control over the property's design. 

However, the one-time close loan can be harder to qualify for, and the process takes longer than a traditional mortgage.

But for many first-time buyers, it’s worth the effort. 

Borrowers who want more control over the quality of the property's materials, appliances, and overall design may gravitate toward this type of home loan, especially given that the FHA and VA down payment requirements for these more expensive loans are no different than for purchase loans.

Being more expensive, single-close construction loans are riskier for the lender. You may find that your participating lender requires higher FICO score ranges for loan approval, and down payment assistance is typically not allowed for One-Time Close loans. 

You’ll want to take some additional planning and saving time to work on your credit scores and debt ratio before applying.

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 would like to be contacted by a licensed lender in your area, please respond 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 Cabins, Shipping Container Homes, Stilt Homes, Solar (only), or Wind-Powered (only) Homes.

Contact Us:  Send Us Your Request – Spam Safe - FHA / VA One-Time Close

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.
See Your Credit Scores From All 3 Bureaus

Do you know what's on your credit report?

Learn what your score means.

Articles, Updates, and Guidelines
OTC articles
Tips On Using Construction Loan Builders

If you would rather build your own new home than buy somebody else’s dream house, you have many options, including FHA One-Time Close mortgages and VA construction loans. No matter your loan type, the need for third parties, including builders, inspectors, and appraisers, is real. You likely won’t be allowed to act as your own builder, electrician, or plumber. Screening these third-party services is important.

How To Compare One-Time Close Lenders

When you decide to build your dream home, one important step is comparing participating One-Time Close lenders for VA and FHA options. When you are ready to start shopping around for a lender, it’s smart to list standard questions to ask each loan officer or financial institution. What questions should you ask when comparing OTC lenders?

The Importance Of Your Budget To Build A New Home

Do you want to build a home from the ground up using a One-Time Close construction loan? Those who invest in construction or renovation projects know some simple guidelines about planning the budget. If you are new to this type of home loan, you'll want to budget like the pros and there are some simple ways to do that.

-- Find More Articles in the OTC Library -- is not a government agency. We do not offer or have any affiliation with loan modification, foreclosure prevention, payday loan, or short term loan services. Neither nor its advertisers charge a fee or require anything other than a submission of qualifying information for comparison shopping ads. We do not ask users to surrender or transfer title. We do not ask users to bypass their lender. We encourage users to contact their lawyers, credit counselors, lenders, and housing counselors.

SecureRights Advertiser Contact Information

One and Won is a registered trademark of Texcorp Mortgage Bankers, Inc.