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

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VA One-Time Close Construction Loans for Military Veterans

VA One-Time Close Construction Loans for Military Veterans
Are you an officer in the Army, Navy, Air Force, Marine Corps, Coast Guard or United States Space Force? If you are nearing the time when you want to “drop papers” to begin your military retirement process, home ownership is likely on your mind.

And officers about to retire who explore their options to build a dream home instead of buying someone else’s house have some very unique advantages when using a VA One-Time Close construction loan to build instead of buy.

Down Payments and VA Loan Funding Fees

The biggest hurdle for some home buyers is the down payment. VA construction loans allow zero down, and borrowers who receive or are eligible to receive VA compensation for service-connected disabilities are allowed to apply for an exemption to the VA loan funding fee.

That means a significant number of military officers who have served before or since 9/11 may qualify for a home loan without having to pay two of the biggest expenses associated with these mortgages in general.

Officers getting ready to retire are in a unique position to use a VA construction loan to build--after a 20 year career in uniform or longer, the amount of borrowing power an officer with good credit has goes a long way toward building a forever home. Why? 

Take Your Time Building Your New Home

Construction loans take time; those investing the money to build instead of buy should not be in a hurry--its best to come to the process expecting the job to take time to be done properly. You’ll have to make other arrangements for temporary living space while your home is being built and inspected, but an officer who knows she will retire within a few years (or even next year) can get a head start on a construction loan by applying before the estimated date of retirement or separation.

In such cases, they key to loan approval may be showing how you will be able to afford the loan after leaving military service.
Those with retirement plans can show the lender how their post-military income will let them afford the home loan, but if you plan on continuing a career post military, it’s best to consult with a participating VA lender as early as possible to ask when considerations should be made when planning a home purchase on the cusp of retiring.

You may find that applying for the home loan after you’ve started your new civilian career is more advantageous when it comes to loan approval but don’t assume--talk to a loan officer to learn what the best course of action is if you plan to retire or separate but want to continue working.

Much will depend on your income, its stability, and whether or not it is sufficient to meet your current expense AND the mortgage. If your retirement pay and other savings/investments/etc. Are enough to meet lender standards without additional income, you may be able to move ahead with your construction loan even if you aren’t working.

What to Have Ready

When you talk to a loan officer, be sure to have information about your current credit scores, residual income from 401(k)s or other investments, your military retirement pay, and any other source of income that could help influence the lender’s decision to approve your VA One-Time Close mortgage application.

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.

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 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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