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

Expect The Unexpected With Your One-Time Close Loan

Expect The Unexpected With Your One-Time Close Loan
If you want to build a home from the ground up on land you own or buy in conjunction with the loan, you need a One-Time Close construction loan.

Available as a VA or FHA option, the single-close construction loan makes it possible to build a home with plans and materials you approve. These loans are more complicated than real estate purchase loans but are an option worth considering for the right borrowers.

However, there are vital questions to ask in the planning stages. Here's what to consider as you plan to build a home.

Do I Need Extra Funds?

Typically, yes, you should have a contingency reserve for the project to manage cost overruns. Ask yourself if the construction project could experience any delays or problems. The answer is commonly, yes, there will be delays or budget issues to be mindful of.

Saving extra money to complete the job in the face of the unexpected is smart.

Should I Expect My One-Time Close Project To Be On Time And Budget?

There is no such thing as a delay-free construction loan process. Assume there WILL be cost overruns, delays or pauses in the work, and related complications. These are often typical of building or renovating. 

If you fail to plan for delays and higher expenses, you likely won't be ready to handle delays in getting the building permits or supply chain problems that could prevent your work from beginning as scheduled. Even the weather can be responsible for some delays or unexpected costs.

By anticipating the unexpected in this complex process, you put yourself in the best position to manage problems on the road to completion and move-in.

Quality Counts

It may be tempting to save money by cutting corners in the construction or materials side of the project. Is this wise?

Selecting quality materials and designs for the work does mean spending extra, but the durability and lifespan of those materials may be vastly different from those of cheaper options.

Paying more upfront for quality means potentially avoiding costly replacements later. Whether it's the siding on your home or the appliances you choose to install, sometimes you get what you pay for. Paying the extra for better quality makes sense.

Letting The Builders Cut Corners To Save Money?

Some contractors may try to talk you into accepting a discount or price break because that builder claims to have surplus materials left over from past work. In such cases, the arrangement is made off the books and isn't part of the official, approved process.

Don't agree to this. You have no recourse if the work is shoddy or the materials are less than ideal. Never allow a contractor to talk you into departing from the legally binding agreement in writing you signed. And remember, if it isn't in writing, you don't have protection or guarantees.

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 consistently provide 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.

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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Construction Loan Choices

When planning a construction loan, you have many options. For example, do you want to buy land with a loan to build the house? Or do you already own a parcel suitable for the construction project? There are many other choices to make with home loans, but some don’t necessarily apply to construction mortgages.

Expect The Unexpected With Your One-Time Close Loan

If you want to build a home from the ground up on land you own or buy in conjunction with the loan, you need a One-Time Close construction loan. Available as a VA or FHA option, the single-close construction loan makes it possible to build a home with plans and materials you approve.

Construction Loan Terms To Remember Before You Start

There are many industry terms unfamiliar to first-time home buyers, especially those looking for a One-Time Close construction loan. Knowing some of these terms in advance can help you make better decisions in the planning stages of your single-close loan. We examine some important construction loan terms below to help you better navigate the process.

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