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

How To Compare One-Time Close Lenders

How To Compare One-Time Close Lenders
When you decide to build your dream home, one crucial 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?

OTC Lenders Don’t Offer All Home Loans

Why? Simply because not all lenders offer all FHA, VA, or other construction loan options. Some may offer FHA but not VA loans, or vice versa. Some may offer them both.

Don’t forget to ask up front before filling out any forms whether the type of home you want to build is approved or the type of loan you need is offered. Construction loans are riskier than purchase loans, so lender standards are higher in this area, and lender restrictions can be, too.

Compare VA And FHA Lenders Alike

Not everyone qualifies for a VA construction loan, but if you do, it pays to examine both VA and FHA options. No matter what type of lender you compare, there are a few things in common you want to know from each.

Construction loan interest rates are one issue. Your lender’s fees and the lender’s credit requirements are another. Be sure to get detailed information about all the above.
There are less obvious questions. For example, are there any perks offered for new customers?

What about starting a new checking or escrow account at that financial institution? Also crucial? Ask the lender about their loan options for single-unit and multi-unit properties. 

You may find lenders unwilling to lend money to build multi-unit homes. Do all have this rule? It pays to shop around to find out.

Ask About Interest Rate Options

What are the options for the lender to lower your mortgage loan interest rate? Asking directly could initiate a whole new discussion. Try asking the lender about options for getting a better rate.

The substance of the answer may not be as important as how the lender responds. Does the lender try to avoid the subject? That lender might not be right for you compared to the one with a more direct answer, regardless of what that answer actually is.

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.

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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