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

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The Base Home Sales Price for One-Time Close Loans

The Base Home Sales Price for One-Time Close Loans
What is the base home sale price? If you are interested in building a home on your own lot using a One-Time Close construction loan, this is a term you should be familiar with; construction loans are different from purchase loans for a variety of reasons but one big one is how the cost of the mortgage is calculated.

One-Time Close (OTC) mortgages feature a single loan for the construction of the property as well as the mortgage to buy that property. Since the home must be built from scratch there are a number of variables that can affect the base price of the home. What kind of variables?

The design itself, for example--are you interested in a one-unit home with a two car garage? That may cost more than the construction of a similar house but with a smaller, one-car option. Do you live in an area where basements are common? If you want a fully finished basement your labor costs may be higher. 

And then there are the choices of material. Do you want a home with granite counter surfaces? Or do you want synthetic materials instead? These are choices that will affect your base price. The base home sales price is more or less a collection of choices you will make about the home in these areas and more.

Not all One Time Close contractors will charge the same for things used to calculate the base price--you may find that some companies have standard offerings of a certain cost, upgrades (like choosing a granite countertop over a laminate top instead), even different layouts and design features. You may also be offered a variety of options for one-story, two-story, split-level, or other design features.

Your OTC contractor can adjust the base sales price depending on the features you prefer to arrive at the amount that will be charged for the project. The more upgrades you have, the higher your base costs will be--it’s good to know what areas you don’t want to skimp on and which areas may be more flexible.

What should you keep in mind when considering this calculation? Not all contractors charge the same--yours may include granite countertops as a standard feature, others may feature those countertops as an upgrade. It is a good idea to shop around for a contractor.

The base home sales price will not include unexpected costs, or “site expenses” that may occur during construction. If there is trouble excavating the ground for a basement, for example, there may be delays resulting in higher costs that could not be anticipated. These site costs are not included in the base home sales price.

When breaking down the expenses for an OTC mortgage, the base home sales price is listed along with any seller-paid costs, the interest expenses over the construction period, and soft costs associated with construction.

Want More Information About One-Time Close Loans?

We have done extensive research on 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 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 allows 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.

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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 are eligible veterans, 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 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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